Welcome to the Newschoolers forums! You may read the forums as a guest, however you must be a registered member to post.
Register to become a member today!
Need help from stock nerds
Posts: 830
-
Karma: 11,922
Is it possible tu lose more money then u invest? If so how?
Posts: 779
-
Karma: 4,120
Yes, easiest way is with something called a swap. Swaps are investment strategy that is used when you anticipate the decline of a stocks value. You do this by effectively borrowing shares from someone with an agreement to basically return them at some later time. Once you have the borrowed shares you sell them and then wait for the stock price to fall. At this point you would buy the stocks back at a lower price and return the shares and pocket the difference. The problem arises if the stock price goes up. You have a contractual obligation to rebuy the shares later so if the price goes up the losses you could incur aren’t limited to your initial investment, you are on the hook for whatever the value of the borrowed shares is at then.
Posts: 1062
-
Karma: 6,889
Not if you properly implement your sigma male grindset
All times are Eastern (-5)