In a single day, 1,422hundred million won in forced liquidations... A direct hit to individuals investing with borrowed money
Individual investors were subjected to total forced liquidations worth 1,422hundred million won in one day. As the KOSPI plunged in three days, losses materialized in highly leveraged individual accounts.
Individual investors were subjected to forced liquidations worth 1,422hundred million won. The result was losses accumulating over a short period in accounts with a high proportion of leveraged investments.
These forced liquidations occurred after the recent sharp stock-market decline, the so-called 'Black Tuesday and Wednesday.' As the KOSPI plunged in three days, market volatility increased significantly.
According to the article, margin calls continued in individual accounts where investors had borrowed money to invest, and brokerage systems automatically liquidated the positions. The amount of forced liquidations tallied on a one-day basis was disclosed as 1,422hundred million won.
This tally appears to include liquidations arising from leveraged positions, such as individuals’ margin loans and alternative trading. The article does not provide a detailed breakdown by security or the distribution among securities firms.
The article contains no immediate official announcement from the financial authorities. The detailed figures may change if additional disclosures are issued by securities firms or the authorities.
This incident shows that forced liquidations materialized in the accounts of individual investors who had accumulated leverage over a short period. It is necessary to check disclosures from the relevant securities firms and investors.
Sources: 매일경제 증권
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