BlockBeats News, July 14th. The recent volatility in the South Korean stock market has intensified, and the risks of leveraged trading have begun to be significantly exposed. According to data from the Korea Financial Investment Association FreeSIS, last week (July 6th to July 10th), the total amount of actual reverse transactions carried out by South Korean securities firms for unsettled receivables was approximately 324.95 billion Korean won. This amount was about 32% higher than the previous five-week average of approximately 244.21 billion Korean won, indicating a noticeably high-pressure week. Compared to the relatively calm week of June 15th to June 19th, last week's amount was about five times higher.

Looking at the daily data, the forced liquidation pressure in the South Korean stock market significantly intensified on July 9th. On that day, the actual reverse transaction amount reached approximately 142.197 billion Korean won, accounting for 10.2% of the unsettled receivables, marking the highest point of the week. On July 10th, this amount still remained at around 81.613 billion Korean won, accounting for 5.7%. In the preceding three trading days, the amounts were 39.698 billion Korean won, 31.741 billion Korean won, and 28.846 billion Korean won, respectively.

The so-called "reverse transaction" refers to when investors buy stocks using financing or unsettled funds and, if they fail to replenish the funds promptly, the brokerage firm will forcibly sell the relevant stocks according to the rules. This data is not equivalent to the "number of liquidated positions," but it can reflect the scale of passive liquidation of leveraged accounts during a market downturn.

Analysts believe that when the stock index continuously retreats and individual stock declines widen, margin trading accounts and short-term trading accounts are more likely to trigger margin calls or forced liquidation pressure. If market sentiment continues to weaken, reverse trading may further amplify the intraday volatility, leading to a chain reaction of "decline, liquidation, followed by another decline."