Kospi Jumps More Than 4%, Nears 5,900 as KRX Triggers Buy-Side Sidecar
Summary
- The Kospi surged more than 4% intraday, prompting the Korea Exchange to trigger a buy-side sidecar.
- The Kospi was up 4.55% at 5,894.75 from the previous session, showing strong momentum as it approached the 5,900 level.
- The buy-side sidecar activation suspended the effectiveness of program trading buy orders for five minutes.
Forecast Trend Report by Period
The Kospi extended its intraday advance to more than 4%, prompting the Korea Exchange to trigger a buy-side sidecar.
According to the Korea Exchange on October 28, the benchmark index was up 4.55% from the previous session at 5,894.75. With the index nearing the 5,900 mark and maintaining its strength, the effectiveness of program trading buy orders was temporarily suspended.
A sidecar is a mechanism designed to curb the impact of sharp swings in the futures market on the cash market. It is triggered when Kospi 200 futures rise or fall by more than 5% from the reference price and remain at that level for at least one minute.
When a buy-side sidecar is triggered, the effectiveness of program trading buy orders is suspended for five minutes before being lifted automatically.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.