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A comment on Amazon engineer will let strangers manage his $50,000 stock portfolio 'forever'. Parent comment

Re:Amazon engineer will let strangers manage his $50,000 sto... by zAy0LfpBZLC8mAC on Thursday July 06, 2017 @07:17PM (#14714751)
No, that is not what stop-loss orders are for. A stop-loss order only puts a sell offer into the market when the market prices falls below a certain threshold, there is no guarantee as to what price someone will actually buy your shares at, or that anyone will buy them at all.

If you want to have a hard limit on the loss, you'll have to buy a put option.

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Re:Amazon engineer will let strangers manage his $50,000 sto... by awad on Friday July 07, 2017 @02:26AM (#14716488)
Technically the put doesn't guarantee anything since not everyone is too big to fail but for most purposes this is true.
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Re:Amazon engineer will let strangers manage his $50,000 sto... by ABCLAW on Friday July 07, 2017 @11:16AM (#14718969)
Not sure why this is being voted down. A counterparty in an option agreement can become insolvent. This is typically analyzed under the name counterparty risk.

Much much much less common than a stock going down, but when large counterparties become insolvent, a lot of people start needing to write off big chunks of their positions.

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Re:Amazon engineer will let strangers manage his $50,000 sto... by discodave on Friday July 07, 2017 @12:26AM (#14716051)
Even then you have counterparty risk.
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