Can I lose more than I deposit in my invest account?

Can I lose more than I deposit in my invest account?

No it’s not leveraged.

You only loose what you invest. (as far as i am aware)

You can’t lose more than you invest, but you can of course still lose money.

If I buy 1x stock at £10, then it crashes and remains at £1 for the rest of eternity, I have lost the £9 difference, but will never lose more than £10.

Even as a retail investor in CFD you are protected from negative balance.

Ah alrighty, cheers everyone. Wanted to make sure I wasn’t missing something obvious :slight_smile:

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Was worth asking though, there’s no silly questions.

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Also worth noting that a loss is only a realised loss when you sell. Until you hit sell it’s just a paper loss.

Stocks will go up and down over time, so the key time to sell on long term investments when in loss is when the business you’ve invested in has some serious skeletons or heading towards administration.

And as mentioned if you buy £x the worst case scenario is it’s worth zero, as in each share is worth 0p. In reality you would exit before that. Have a set number in your head and stick to that exit, be that -20% -50%. Sometimes you need to exit and you need to be strong when things have turned sour.

Not to scare you but it can happen where something like Wirecard happens where many billions are unaccounted and an instant drop but you’ve got to be very unlucky. These gladly are rare.

Anyway only invest what you are prepared to lose and do as much due diligence on before hitting that buy.

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Which brings us on to the next point: diversification. You never know what could happen to a business, not matter how much you trust it. Nobody expected this to happen to Wirecard. So diversifying across companies and industries can protect you from unexpected events. How diversified is up to your risk tolerance

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