How is it possible? I thought you can only lose what you put in. So 100% max. But I’ve seen news and posts about how people lose much more than that.
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You can certainly lose more than you put in if you’re borrowing money because you’d owe what you borrowed, plus interest. With a margin account, you’re essentially borrowing money from the broker and incurring interest on the loan. If the stock you purchase declines in value, not only do you lose money because of the declining share price but you also have to repay the borrowed money plus interest.
Short selling is another way to lose more than you put in.
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