The so-called margin trading, or borrowing money to invest in the domestic stock market, is on the rise again.
As of the 21st, the balance of margin transactions was tallied at KRW 32.4162 trillion.
After recording the KRW 32.1 trillion range on the 30th of last month, the margin balance dropped to the KRW 27.4 trillion range on the 4th, before rising consecutively for four trading sessions recently.
Margin trading is a form of individual investors borrowing funds from securities firms to purchase stocks, and is considered a representative indicator of margin investing.
Margin balances typically increase during bullish stock markets. As the KOSPI, which had dropped to the 6,200 level earlier this month, slowly showed a strong upward trend by recovering the 6,900 level on the 21st, the balance has been on the rise.
Conversely, investor deposits, which serve as waiting funds for the stock market, dropped significantly.
As of the 21st, investor deposits were tallied at the KRW 100.7 trillion range, decreasing by about KRW 4 trillion from the previous session.
Investor deposits decrease when retail investors purchase stocks or withdraw funds, which is analyzed to mean that investors are actively deploying their money into investments rather than leaving it idle.
While ultra-short-term margin trading, viewed as unsettled transactions, was tallied at KRW 1.0715 trillion, the amount of forced liquidation due to failure to repay surged to KRW 48.3 billion.
This is more than five times the previous session's forced liquidation of KRW 9.3 billion, and is showing a sharp and continuous increase since the 21st, when the KOSPI rebounded.
Reported by Kim Taewon | Video by Kim Minji | Graphics by Yang Hyemin | Produced by SBS Digital News
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