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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Selling short. You borrow 1 share of XYZ stock from Joe at $10, then sell it right away, hoping the price goes down. So at that point your net investment is $0. But then the price of XYZ jumps to $40. Now you still owe Joe 1 share of stock but have to buy at $40, losing $30
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