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Korea Volatility Spike Ebbs as Leveraged Trades Are Flushed Out

Market Technicals & FlowsRegulation & LegislationCredit & Bond Markets

South Korea’s stock-market turmoil may be nearing an end after a historic selloff flushed out leveraged positions. Regulatory curbs also drove a sharp drop in some of the riskiest trading products, but the article suggests the worst phase is likely over as positioning is unwound.

Analysis

South Korea’s stock-market turmoil may be nearing an end after a historic selloff flushed out leveraged positions. Regulatory curbs also drove a sharp drop in some of the riskiest trading products, but the article suggests the worst phase is likely over as positioning is unwound.

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