What is a forced liquidation? What actually happens when stock prices fall after debt-financed investing

반대매매란 무엇인가

A forced liquidation refers to a situation where a securities firm forcibly sells an investor's stocks when the investor fails to maintain the required collateral after purchasing stocks with borrowed funds from the firm. This can lead to heavy losses, and leveraged investing carries an even higher level of risk due to margin interest and calls for additional collateral.

Individual investors collapsing due to debt-financed stock investments|SK Hynix stock price outlook, should I buy now?

SK하이닉스 주가 전망과 반등 기대

Recently, leveraged investing (bit-too) is increasing again in the domestic stock market, and investors are expecting stock prices to rise. However, if stock prices fall, losses will expand and there is a risk of forced liquidation. While SK Hynix has a positive outlook due to increasing demand for AI and HBM, caution is required when investing through margin loans.