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No, I described the practical downside exposure of a short (or, the trader could put in a stop). It is no more "unlimited" than is the downside of buying a bun
by sk5t 11y ago
No, I described the practical downside exposure of a short (or, the trader could put in a stop). It is no more "unlimited" than is the downside of buying a bunch of ultimately worthless options.
- eru 11y agoUnless your options trade on an exchange, and they have a clearing house behind them. (The government doesn't let the clearing house fail.)