As the KOSPI index keeps hitting a record high day after day, losses for investors in leveraged inverse products that track the move in reverse by two times are ballooning like a snowball.
KODEX 200 Futures Inverse 2X was transacted at 661 won on the KOSPI market at 3 p.m. on the day. The share price fell 5.84% (41 won) from the previous trading day.
KODEX 200 Futures Inverse 2X is an exchange-traded fund (ETF) that inversely tracks two times the KOSPI 200 futures index's daily gain. As the KOSPI index topped the 4,200 level for the first time on the day and KOSPI 200 futures neared the 600 level, KODEX 200 Futures Inverse 2X hit an all-time low.
Individuals have made a net purchase of 2.052 trillion won worth of KODEX 200 Futures Inverse 2X so far this year. It was the third-largest net purchase among domestic ETFs. However, as the KOSPI market's strength continues, mark-to-market losses keep mounting.
For 8,735 KODEX 200 Futures Inverse 2X investors linked to Naver Pay's "My asset service," the average purchase price is 2,075 won. Based on the current share price on the day, the average unrealized loss rate is 68.1%.