I think this single stock leverage regulation is a bit off.
Putting aside the long-term effects, both regulations are aimed at reducing trading volume, especially buying.
Then, when it takes effect, stock prices will inevitably plummet. How much money has already been invested?
Will all the people who used leverage cleanly sell everything and that money will go straight into individual stocks?
That's impossible. It's much more likely that the money will be tied up and only buying momentum will be weakened.
Anyone who has tried investing in stocks can make this prediction, but I don't understand what they were thinking when they came up with this as a solution...
