Can You Lose More Money Than You Invest In Stocks? – 3 Ways To Avoid It
As one of the oldest forms of investment, the stock market has thrived for almost 400 years and has grown substantially over time.
Ways You Can Lose More Money Than You Invest In Stocks
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.
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.
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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