South Koreans wanting to pour money into risky investment products will first have to watch a training video as regulators strengthen oversight of an army of retail traders known for their aggressive strategies and tolerance for volatility.
From Monday, brokerages will automatically block investors wanting to put their funds into leveraged or inverse ETFs and who cannot provide the certification number given to those who have completed the one-hour online training.
The training focuses on the structure of leveraged ETFs, the cost of hedging and the compounding effect that can magnify gains and losses. Those investing in derivative products overseas will have to do a three-hour mock trading session.