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Wait, is it possible to "owe" money to Robinhood? I have never used them but I was under the assumption that you can only lose the money you deposited, because
by abiogenesis 6y ago
Wait, is it possible to "owe" money to Robinhood? I have never used them but I was under the assumption that you can only lose the money you deposited, because of the leverage, but you can not go negative.
The tweet seems to imply that too, but a lot of the comments here look misinformed.
- nknealk 6y agoI think that’s the default for any brokerage product. However, when you apply for options trading, you have the option to add margin to your account. It’s essentially just a tick box. It appears from the twitter thread that this user unknowingly added margin to his account, traded on margin, then had a really big margin call.
- asdff 6y agoYou owe your broker if you trade on margin