Can You Lose More Money Than You Invest In Stocks? – 3 Ways To Avoid It
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As one of the oldest forms of investment, the stock market has thrived for almost 400 years and has grown substantially over time.
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Ways You Can Lose More Money Than You Invest In Stocks
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1. Margin Accounts/Leveraged Trading
Margin accounts enable you to leverage your investments by borrowing up to 50% of your account's value from your broker.
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2. Short Sells
You can short sell a stock when you believe its price will decrease in value. You can take advantage of the market even when the prices of stocks are falling.
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3. Options Trading
Stock options are legally binding agreements granting a trader the right to buy or sell a stock at a particular price on or before a chosen date.
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