The Korea Financial Investment Association has created a mandatory pre-trade education course for investors seeking to trade single-stock leveraged and inverse exchange-listed products, strengthening investor protections for high-risk instruments.
The association’s Financial Investment Education Institute said on the 28th that it opened an online course titled “Pre-Trade Education for Single-Stock Leveraged and Inverse Exchange-Listed Product Trading.” The requirement was introduced ahead of the May 22 launch of single-stock leveraged (±2x) products based on leading South Korean shares.
Completion is required for anyone who wants to invest in single-stock leveraged or inverse products. Investors must register the completion number issued after finishing the course in their brokerage system before they can place trades.
The curriculum focuses on how leveraged products work and the risks involved, including concepts such as negative compounding effects and leverage. It also includes quizzes and a pre-investment checklist to test understanding.
Investors must choose the appropriate course depending on what they plan to trade. A combined program covering single-stock leveraged and inverse products totals two hours (one hour basic plus one hour advanced). Those investing only in single-stock products can take a separate one-hour advanced course. Existing investors in leveraged ETFs and ETNs are also subject to the same pre-trade education requirement.
The association said the training will help investors better understand the products and improve their ability to make rational investment decisions.
The course has been available since 10 a.m. that day and can be accessed by applying through the Financial Investment Education Institute’s website.
* This article has been translated by AI.
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