Can you lose more than your investment?

February 28, 2023 - 2:06 pm EST

Yes and no. If you purchase straight calls and puts, you can only lose your investment in that purchase, should the options expire worthless. If you erroneously ‘sell naked’, you could lose your entire account balance and more, if called upon to inject more funds into your trading account to cover a short position. These scenarios are covered in proper training. We buy first, then sell, and your only exposure is your investment.

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