Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf...
by jacquesm on Tuesday November 05, 2019 @03:11PM
(#21456148)
> will
Can. It is isn't a certainty for those that understand, but if you don't understand that will is probably correct.
Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf...
by perl4ever on Tuesday November 05, 2019 @10:15PM
(#21459441)
Well, it's not normal to lose more money than you have, even if you are investing on margin, because obviously that creates risk for the people you owe that they don't want. That's why there are minimum equity requirements and your positions can be liquidated without even a margin call if necessary.
Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf...
by koolba on Tuesday November 05, 2019 @03:00PM
(#21456039)
It’s not implicit, it’s explicit in the margin agreement you sign to create or extend the account.
You’re also on the hook for any excess losses that are not covered by cash in the account. They can and will go after the rest of your external assets.
LOL WAT? If you are using the margin feature of your brokerage account it should be implicit that you understand you will lose more money than you have. Many people have bankrupted even due to a temporary fluctuation in pricing causing margin calls. This is true even if you don't trade options, just less likely so.
Personally I trade options but I don't enable the margin feature on my account. Then the worst case scenario is I lose everything I put into the account; I wouldn't lose the money I didn't put in my account.