Market Rules
Below are the key trading rules and restrictions for Korean stocks.
1. Supported Markets
|
Market |
Description |
|---|---|
|
KOSPI |
Stocks of companies listed on the main board |
|
KOSDAQ |
Technology and growth company stocks |
Note: Only common stocks are supported. ETFs, ETNs, ELWs, and other products are not available.
2. Daily Price Limit
| Market | Price Limit |
| KOSPI / KOSDAQ | ±30% from the previous day's close |
You can still place orders when a stock hits its limit, but they may not be filled.
3. Circuit Breaker
|
Level |
Trigger |
Market Action |
|---|---|---|
|
Level 1 |
Index falls more than 8% from the previous day's close (for 1 minute) |
Trading halts for 20 minutes. You can only cancel orders. Trading resumes with a 10-minute call auction. |
|
Level 2 |
Index falls more than 15% from the previous day's close and at least 1% below the Level 1 trigger |
Same as Level 1 |
|
Level 3 |
Index falls more than 20% from the previous day's close and at least 1% below the Level 2 trigger |
Trading stops for the rest of the day. No orders accepted. |
- Each level can only trigger once per day.
- Level 1 and 2 won't trigger after 14:50 KST (13:50 HKT/SGT).
4. Volatility Interruptions
Trading can be paused for 2 minutes when:
- Static VI: A stock moves 10% or more from the previous day's close
Dynamic VI: A stock moves 3-6% from its most recent trade price
5. Short Selling
Individual investors cannot short sell Korean stocks. Only institutional investors can short sell under regulated conditions.
6. Account Requirement
You need a margin account to trade Korean stocks. Cash accounts are not supported.