In one day, 1,422hundred million won in forced liquidations occurred, hurting individual investors
10On a single day, the scale of forced liquidations for individuals who invested with borrowed money reached 1,422hundred million won. As the Kospi plunged after three days, it was tallied that a large number of individuals’ leveraged positions were liquidated.
10On a single day, the scale of forced liquidations for individuals who invested with borrowed money reached 1,422hundred million won, it was tallied. This was linked to losses for individual investors and a rise in sell orders.
Individuals who had borrowed money were subject to forced liquidation. The liquidation took place as securities firms closed positions in response to a sharp stock-price drop.
The Kospi plunged after three days. The continued downtrend and heightened volatility fueled the forced liquidations.
The concentrated liquidation over a single day changed the market’s trading flow. A notable feature was the increase in sell orders in the short term.
This tally is calculated on a daily basis. The figures show the scale of liquidation on a specific trading day.
There are signs that interest-rate changes or external setbacks increased liquidation pressure. However, the article focused on the liquidation amount and the fact of the sharp drop.
It was noted that individual investors had invested using margin loans and collateralized loans. Those positions were quickly unwound when share prices fell sharply.
Going forward, credit balances and daily liquidation volumes may also serve as barometers of volatility. Investors need to check related disclosures and trading records.
Sources: 매일경제 증권
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