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Options are different than equities. The possibility of losses far exceeding the initial position is easily possible. If the customer loses all their money, the
by dcolkitt 6y ago
Options are different than equities. The possibility of losses far exceeding the initial position is easily possible. If the customer loses all their money, the broker is in the hook.
IB clearly is concerned about the credit risk, when the stock could literally rise or fall by a factor of ten in a day. They’re still allowing trading in the underlying stock.
- egman_ekki 6y agoI tried through IB and could not buy GME stock either.
- sgpl 6y agoCorrect me if I'm wrong but if I'm buying a call, my downside is limited to the price that I pay for the option no? Obviously if people are selling options / etc. downside can be uncapped.