New investors in single-stock leveraged products must complete 5 hours of mock trading starting today

Effective today, individuals seeking to invest in single-stock leveraged products must first complete a mandatory 5-hour mock trading session. This new regulation, announced by the Financial Services Commission (FSC), aims to bolster investor protection by ensuring a foundational understanding of these complex financial instruments.

The FSC has mandated this preparatory period to mitigate the risks associated with leveraged products, which can amplify both gains and losses. The commission believes that hands-on experience through simulated trading will better equip new investors to navigate the volatility and potential pitfalls inherent in these investments.

This initiative is part of a broader effort by the FSC to enhance financial literacy and prevent significant investor losses stemming from a lack of adequate knowledge. By requiring a minimum of 5 hours of mock trading, the FSC intends to foster a more informed and cautious approach among those entering the market for single-stock leveraged products.