In today’s briefing:
- Korea Investment & Securities’ Suspension of Credit Loans for Stock Purchases – The Trigger Event?
Korea Investment & Securities’ Suspension of Credit Loans for Stock Purchases – The Trigger Event?
- The reduction of credit loans by Korea Investment & Securities and Kiwoom Securities in the past week may have accelerated unwinding of positions of 8 stocks related to CFD selling.
- The balance of credit loans for KOSPI increased 12.7% YTD. On the other hand, the balance of credit loans for KOSDAQ increased by 36.1% YTD.
- As local securities companies further reduce credit loans and regulators also restrict CFD related leverage, a sound pair trade could be to go long KOSPI 200 and short KOSDAQ 150.
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