Fnalysis.
💥 Extreme leverage
South Korea launched leveraged ETFs tied to Samsung and SK Hynix, and the regulator who approved them admitted he regrets it
Sixteen 3x leveraged funds tied to individual stocks went from $3 billion to $45 billion in weeks. 92% of investors are retail traders. When the market turned, some funds dropped more than 25% in a single day, triggering circuit breakers on the Seoul exchange and rattling even Nasdaq futures.
Source: Bloomberg →Multiply the gains by 3, and the losses too.
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