Lying in a slump, South Korea's KOSPI fell 9% on the first day and rose 6.5% on the second day, jumping up and down like taking medicine. This is the Shanghai Composite Index, not a single stock. After hundreds of thousands of people liquidated their positions, it rose back What's going on? South Korea approved the double leverage ETF of Hynix and Samsung in May this year, and as a result, these people in South Korea directly invested $19 billion But Hynix's stock only sold 4.5 billion yuan in one day, with 19 billion yuan of leverage pressed against the 4.5 billion yuan pool There is a dead rule in leveraged ETFs that positions must be adjusted before the daily closing Buy when the price rises and sell when it falls, otherwise the leverage ratio will be incorrect the next day and must be forcibly calibrated Nomura has calculated that for every 1% movement of Hynix, these ETFs have to passively enter and exit $9 billion A pond that can only digest 4.5 billion in a day, forcefully pouring 9 billion into it It exploded directly on July 13th When Hynix fell, the ETF was forced to crash at the end of the trading session. The more it crashed, the more it fell, and the more it fell, the more it crashed, resulting in a vicious cycle Hynix fell 15% that day, KOSPI fell 9%, circuit breaker That 2x Hynix ETF went from 193 to 65, knee jerk The next day, the regulatory authorities were in a hurry and rushed out to demand rectification Upon hearing this, the market stepped on the accelerator and KOSPI rose 6.5%, triggering a circuit breaker in its upward trend Even if it falls, it will melt; if it rises, it will melt. The same formula, the direction is just reversed There have been a total of 12 circuit breakers in South Korean history, and 6 in the first half of this year. All after the launch of leveraged ETFs The President of the Financial Supervisory Authority publicly admits his cowardice: approving this, we were wrong Batch in May, overturned in July, three months The lesson from this is not that leverage is toxic You used a leverage of 19 billion to fill a pool of 4.5 billion, causing hundreds of thousands of people to explode their positions The stronger the certainty of a story, the crazier the leverage pile up When piled up to a certain point, it is about to explode. Hynix is still a good asset with large fluctuations, and the risk and return are proportional. If the transaction is done correctly, you can earn more @MSX_CN enables the free circulation of high-quality assets Entrance: http://(msx. com)/? code=Hl6B41