{"id":5713,"date":"2026-10-14T14:10:22","date_gmt":"2026-10-14T05:10:22","guid":{"rendered":"https:\/\/bitpress.kr\/?p=5713"},"modified":"2026-10-14T14:10:22","modified_gmt":"2026-10-14T05:10:22","slug":"kospi-sidecar-program-selling-pause-circuit-breaker","status":"publish","type":"post","link":"https:\/\/bitpress.kr\/en\/kospi-sidecar-program-selling-pause-circuit-breaker\/","title":{"rendered":"KOSPI's 5% drop paused auto-selling for 5 minutes. What changed?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">At 9:47 a.m. on Oct. 13, KOSPI 200 futures had been trading 5.08% below their reference price for more than a minute, and the Korea Exchange triggered a sell-side \"sidecar.\" It was the first in about two months, since Aug. 20. Yet the KOSPI still closed the day down 5.46% at 6,035.35.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a \"sidecar triggered\" alert pops up, it is easy to assume the market has stopped. Others read it the opposite way, as a sign the bottom is in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the real story lies elsewhere. What a sidecar stops is not the market but sell orders sent by computers, and only for five minutes. It is not a device that stops a fall; it briefly slows how fast the fall happens.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol class=\"wp-block-list\">\n<li>What stops when a sidecar kicks in?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">A sell-side sidecar is triggered when KOSPI 200 futures stay 5% or more below the previous session for one minute. This time, it suspended program sell orders on the main KOSPI market for the next five minutes. After five minutes it lifts on its own.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Program trading (orders that a computer sends automatically once preset conditions are met) is used mainly by institutions and foreign investors. Buy and sell orders that individuals place themselves on a phone app go through as usual, even during a sidecar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is like a supermarket switching off its self-checkout lanes for five minutes while the staffed lanes keep running. Unlike at a supermarket, though, once the five minutes are up the self-checkouts switch back on, and program selling can return.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>What changes during those five minutes?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Some program trades are set to send sell orders automatically once prices fall below a certain level. When prices drop, these orders go out; if that selling pushes prices lower still, the next batch of orders follows. The sidecar cuts that loop for five minutes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the meantime, investors get time to check the news again. On the other hand, with automatic orders out of the market, trading volume can dip briefly and orders can take longer to fill. Put simply, a sidecar changes the speed of prices, not their direction.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>How much was sold on Oct. 13?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Program selling paused for five minutes, but over the whole day program trading was net sold by 2.04 trillion won ($1.52 billion). Foreign investors were net sellers of 4.51 trillion won ($3.35 billion), while individuals were net buyers of 2.23 trillion won and institutions of 1.69 trillion won.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At 10:04 a.m., after the sidecar, the KOSPI was down 5.32% at 6,044.85, and by the close the drop had widened to 5.46%. At one point during the day it slipped to 5,911.11, about 7.4% below the previous close of 6,384.24. In short, the drop did not shrink after the sidecar went off.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Someone with 10 million won (about $7,400) in a fund that tracks the KOSPI would have lost about 550,000 won (about $410) that day (applying the 5.46% drop; a hypothetical calculation). The sidecar did not stop that loss.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>How is it different from a circuit breaker?<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">A separate tool halts all trading. Circuit breakers come in 8%, 15% and 20% stages; the first kicks in when the KOSPI stays 8% or more below the previous close for one minute: all trading on the main market stops for 20 minutes, and for the next 10 minutes orders are collected and filled at a single price. During that time, individuals' orders don't go through either.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A sidecar can be triggered only once a day for each direction, buy or sell, and not in the first five minutes after the open or in the last 40 minutes before the close. On a highway, a sidecar is like pulling only the freight trucks onto the shoulder for five minutes, while a circuit breaker closes the toll gate for 20 minutes. The difference is whether your own car has to stop.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li>Some days, a circuit breaker followed the sidecar<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">On June 26, a sell-side sidecar went off at 11:12 a.m., and about 58 minutes later, at 12:10 p.m., the KOSPI was down 8.18% and a circuit breaker followed. It was the fifth circuit breaker of the year. That day, the market fell to the circuit-breaker threshold even after the sidecar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This time, the deepest intraday drop was about 7.4%, short of 8%. By Global Economic's count, the Oct. 13 sidecar was the 50th of the year. The outlet did not say which sidecars it counted, but an alert that goes off this often is hard to read, on its own, as a sign of either a crash or a bottom.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<ol start=\"6\" class=\"wp-block-list\">\n<li>BITPRESS Insight<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">When a sidecar goes off, what individuals can do stays the same. Neither your sell orders nor your buy orders are blocked. So the ideas that \"the market has stopped, so I can wait\" or \"a sidecar means the bottom\" rest on weak ground. On June 26 the market reached a circuit breaker within an hour, and on Oct. 13 the drop widened from 5.32% at 10:04 a.m. to 5.46% at the close.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What changes in those five minutes is the speed of machine selling. People's selling keeps coming in during the pause, and once the five minutes are up, machine orders can return. How to use those five minutes is still each investor's call.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When an alert pops up in a falling market, first ask not \"has the market stopped?\" but \"did only machine orders stop, or all trading?\" The next decision gets easier from there.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Sources<br><a href=\"https:\/\/www.dt.co.kr\/article\/12088704\">https:\/\/www.dt.co.kr\/article\/12088704<\/a><br><a href=\"https:\/\/www.hankyung.com\/article\/2026101381746\">https:\/\/www.hankyung.com\/article\/2026101381746<\/a><br><a href=\"https:\/\/www.g-enews.com\/article\/Securities\/2026\/10\/202610131008361076923c501012_1\">https:\/\/www.g-enews.com\/article\/Securities\/2026\/10\/202610131008361076923c501012_1<\/a><br><a href=\"https:\/\/www.seoul.co.kr\/news\/economy\/securities\/2026\/10\/13\/20261013500225\">https:\/\/www.seoul.co.kr\/news\/economy\/securities\/2026\/10\/13\/20261013500225<\/a><br><a href=\"https:\/\/kbthink.com\/stock\/sidecar.html\">https:\/\/kbthink.com\/stock\/sidecar.html<\/a><br><a href=\"https:\/\/khan.co.kr\/article\/202606261218001\">https:\/\/khan.co.kr\/article\/202606261218001<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Glossary<\/strong><br><strong>Sidecar<\/strong> \u2014 A mechanism that suspends only program trading orders for five minutes when futures prices move 5% or more in a hurry.<br><strong>Program trading<\/strong> \u2014 Orders that a computer sends automatically when preset conditions are met, used mainly by institutions and foreign investors.<br><strong>KOSPI 200 futures<\/strong> \u2014 Contracts to buy or sell, at a set future value, an index made of 200 leading KOSPI stocks; the sidecar is triggered by their price.<br><strong>Circuit breaker<\/strong> \u2014 A mechanism that halts all market trading for 20 minutes when the KOSPI stays 8% or more down on the day for one minute.<br><strong>Single-price auction<\/strong> \u2014 A method that collects orders for a set time and then fills them all at once at one price.<\/p>\n\n\n\n<p class=\"has-small-font-size wp-block-paragraph\">BITPRESS articles are information to help your investment decisions, not a recommendation to buy or sell any stock or coin. Investment decisions and their results are your own responsibility.<\/p>","protected":false},"excerpt":{"rendered":"<p>10\uc6d4 13\uc77c \ub9e4\ub3c4 \uc0ac\uc774\ub4dc\uce74\uac00 \uba48\ucd98 \uac83\uc740 \uc2dc\uc7a5\uc774 \uc544\ub2c8\ub77c \ucef4\ud4e8\ud130\uac00 \ub0b4\ub294 \ud504\ub85c\uadf8\ub7a8 \ub9e4\ub3c4 \uc8fc\ubb38 5\ubd84\ubfd0\uc774\uc5c8\uace0, \uc774\ub0a0 \ud504\ub85c\uadf8\ub7a8 \ub9e4\ub9e4\ub294 \ud558\ub8e8 2\uc870 426\uc5b5 \uc6d0 \uc21c\ub9e4\ub3c4, \ucf54\uc2a4\ud53c\ub294 5.46% \ud558\ub77d\uc73c\ub85c \ub05d\ub0ac\ub2e4. \uc0ac\uc774\ub4dc\uce74 \uc911\uc5d0\ub3c4 \uac1c\uc778 \uc8fc\ubb38\uc740 \uadf8\ub300\ub85c \ub4e4\uc5b4\uac00\ubbc0\ub85c, \uc774 \uc54c\ub9bc\uc744 \uac70\ub798 \uc815\uc9c0\ub098 \ubc14\ub2e5 \uc2e0\ud638\ub85c \uc77d\ub294 \ud310\ub2e8\uc740 \uadfc\uac70\uac00 \uc57d\ud558\ub2e4.<\/p>","protected":false},"author":3,"featured_media":5714,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"bitpress_en_title":"","bitpress_en_desc":"","footnotes":""},"categories":[380],"tags":[1339,1335,1334,1336,1340,387,1337,1338,216],"class_list":["post-5713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-guide","tag-1339","tag-1335","tag-1334","tag-1336","tag-1340","tag-387","tag-200-","tag-1338","tag-216"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - 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