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Buy a penny stock or an illiquid option and you certainly won't get most of your money back. In addition, there are many other hidden risks. For example, you co
by in3d 5y ago
Buy a penny stock or an illiquid option and you certainly won't get most of your money back. In addition, there are many other hidden risks. For example, you could have the broker increase the margin rates overnight leading to forced liquidations or the stock could be halted and impossible to trade for months.
You can even end up owing more than your whole account is worth if margin is enabled.
- rich_sasha 5y agoRight, if I’m unlucky then sure, something like this can happen. But I’d have to be really unlucky and/or careless to really lose 20%+ of my money. Whereas with crypto it’s so easy to lose 100% plus gas fees, all the time.