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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Leveraged accounts, essentially betting with money you don’t have. Simply purchasing stocks would fall under the risk you’re familiar with, the value could go to 0 and you’d be wiped out end of story. If however, you purchase options like selling shorts against a stock you don’t own and the price goes up rather than down you will have to pay to cover those calls by purchasing the stocks you didn’t actually have in the first place. This can lead to being margin called resulting in debt to the market.
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