Viewpoint: The circuit breaker mechanism in the Korean stock market has failed and is unable to effectively halt sell-offs.
BlockBeats reports that on July 29, the KOSDAQ index plunged by more than 8% during trading, triggering a Level 1 circuit breaker (activated when the index drops more than 8% from the previous day's closing price and lasts for 1 minute).
The circuit breaker mechanism is no longer effective in halting sell-offs. Previously, on July 28, both KOSPI and KOSDAQ consecutively triggered Level 1 circuit breakers on the same day, but KOSPI still ended up crashing 10.84% and KOSDAQ fell 7.72%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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