Starting August 19, first-time buyers of single leveraged ETFs in South Korea must complete at least five days of simulated trading, with total practice time of no less than five hours, before making real purchases. The rule, announced by the Financial Services Commission, applies to related investments both inside the country and overseas. It is the latest in a series of moves by the regulator to curb retail participation in leveraged ETF products, which can amplify market volatility. The new mandate follows substantial losses in these products, which cost investors billions of dollars. Earlier, the FSC had already increased the minimum cash deposit for such trades to 30 million won (about $21,000) and extended mandatory online training for new investors in single-stock leveraged products to three hours. The new rule further tightens what was already a stricter entry process for leveraged ETF trading in South Korea.
South Korea's Financial Services Commission (FSC) will require first-time buyers of single leveraged exchange-traded funds (ETFs) to complete simulated trading before they can make real purchases.
Starting Aug. 19, new investors must complete at least five days of simulated trading, with a total duration of no less than five hours. The rule applies to related investments both within South Korea and overseas.
The move is part of a broader push by the FSC to restrict retail access to leveraged ETFs, high-risk products that can intensify market swings. The stricter requirements follow sharp losses in such products, which cost investors billions of dollars.
Earlier, the regulator raised the minimum cash deposit for these trades to 30 million won (around $21,000) and extended mandatory online training for new investors in single-stock leveraged products to three hours. The new step further tightens oversight of these high-risk instruments.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
