Cryptocurrency Q&A Can you lose more money than you invest?

Can you lose more money than you invest?

SeoulSerenitySeekerPeaceLover SeoulSerenitySeekerPeaceLover Tue Dec 03 2024 | 7 answers 933
I'm concerned about the risks of investing. Specifically, I want to know if it's possible to lose more money than I originally invested. Could this happen and leave me in debt? Can you lose more money than you invest?

7 answers

Alessandro Alessandro Thu Dec 05 2024
Shorting a stock or any other security can lead to significant financial losses.

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WhisperWind WhisperWind Thu Dec 05 2024
The risk involved in shorting is that the price of the stock may rise instead of falling.

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Claudio Claudio Thu Dec 05 2024
If the price rises, the losses can exceed the initial investment.

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Chiara Chiara Thu Dec 05 2024
There is no cap on how much money one can lose when shorting a stock.

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SamuraiCourageous SamuraiCourageous Wed Dec 04 2024
In theory, the losses can be unlimited.

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