If you are buying shares in the market place the worst that can happen is that the shares become worthless because the company has ceased trading - you have lost the money you spent buying them.
If however you are spread bettingyou can lose more money than you initially put in because you are trading on margins - in effect you are borrowing money to gamble with, and if things go down the drain you will owe money. Never gamble with money that you cannot afford to lose
For bullish trades (long buying), no, unless you're using margin.
For bearish trades (short selling), yes, you can have unlimited loss (regardless of margin).
generally you are limited to the risk invested, but check clauses. if a private limited company, they can take possession of your belongings to pay issues collapsed
Hi, I recently made an account with plus500 and am currently using the demo account. I have made some money with this so I am planning to invest some money.
The only thing that is preventing from doing this is if I could lose more money than what I initially invested, for example if I buy ￡20.00 of shares could I end up losing more than ￡20.00 worth of shares if the price goes down by a large amount?
Please explain to me if there are any circumstances where I could potentially lose more than what I have invested.
Thankyou.
