alt Hacker NewsNot true: Depending on product and regulatory regime, for distinct trader/customer groups there may be distinct rules.
And if you are buying an instrument where you can lose more than you invested, the approach maybe wrong? :-)
Replies
KellyCriterion • today at 8:14 PM
...downvoted 2 times for telling the truth about EU or LATAM regulatory regmies, wow,thanks :-D
> And if you are buying an instrument where you can lose more than you invested, the approach maybe wrong? :-)
This is precisely why shorting can lose more than you "invest", because you're not buying an instrument, you're selling it with the intent (or promise, depending on what kind of instrument it is) to buy it back later, hopefully at a lower price.
The risk is unbounded.