Korean student loses $200K in leveraged trading; high-frequency volatility triggers 33 circuit breakers.

KuCoinFlash

Release Time:

Summary

A 24-year-old Korean student, Lee Seung-ho, lost $200,000 in one week of leveraged trading on an app offering 500% margin leverage. A sharp market decline triggered a wave of liquidations, wiping out all gains and principal. Despite the loss, he plans to return if he can raise additional capital, citing high housing costs and limited opportunities for young Koreans. The Korean stock market has hit 33 circuit breakers this year amid surging trading volume. Meanwhile, Goldman Sachs is shifting its focus to China, stating that Chinese AI is now a priority and it is time to buy.

ME AI message: "On the day I lost the most, I literally couldn't breathe at first. Capital had been steadily accumulating, then vanished all at once." These words were spoken by a 24-year-old South Korean university student named Lee Seung-ho, who saved $13,000 during his military service. In his view, for young people seeking to make large sums of money quickly, leverage seemed like a "reasonable choice." He then enabled 500% margin leverage on a trading app, inflating his account size to $200,000 at its peak. But just four weeks later, a sharp market swing triggered a cascade of liquidations. Profits disappeared—and so did his principal. What’s more surprising is that after this total loss, he said: "As soon as I save enough again, I’ll borrow money and return to the market." Because the pressure of reality is too great. In Seoul, South Korea, average housing prices equal roughly 14 years of an ordinary person’s salary. Since homes are unaffordable and savings can’t keep up with rising asset prices, investing in the stock market becomes the only perceived chance to turn things around. Lee Seung-ho says his monthly living expenses are just $338. He believes that in today’s world, ordinary people can hardly afford a home— and the stock market is the only path left to change their fate. But the best summer of his adult life has now ended. And as South Korea’s stock market has swung wildly this year—triggering 33 circuit breakers—Goldman Sachs has turned its attention to China. Goldman Sachs’ latest view is straightforward: Chinese AI is now on the radar—it’s time to buy. (Source: Wall Street Journal)

Source:Show original

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.