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It's the other way around. With stocks, you can take loans and trade on margin. If something happens, like very large gap down in the morning, and they can't un
by mD5pPxMcS6fVWKE 6y ago
It's the other way around. With stocks, you can take loans and trade on margin. If something happens, like very large gap down in the morning, and they can't unwind your position quickly, you could end up in debt. It's a very rare situation in practice. With options, you can only lose what you have invested. Unless you write naked options, which I am almost sure is not allowed on Robinhood.