Margin Maintenance Requirement for Credit Loans Waived for Three Months Amid Stock Market Plunge
Published
As the stock market has fallen sharply, the burden on investors is growing. In response, a measure has been introduced to waive the requirement to maintain a 140% collateral ratio for margin loans for three months. The measure will take effect from the 9th.
Margin loans are a system in which investors borrow money from securities firms to buy stocks. In this case, investors must deposit collateral at or above a certain ratio against the amount borrowed. If the collateral ratio falls below the standard, securities firms may demand additional collateral or forcibly sell the investor's shares. 140% is the benchmark ratio.
With this waiver, investors will be able to avoid situations where they are suddenly forced to sell their holdings due to falling share prices. However, once the waiver period ends, the collateral ratio standard will apply again, so caution is needed.
Investors are advised to check the implementation schedule and detailed contents through securities firms' announcements or releases from relevant authorities. Since measures may change depending on market conditions, it is necessary to keep up with the latest information.
Sources: 뉴스코리아
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