this post was submitted on 02 Dec 2025
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[–] TotallyHuman@lemmy.ca 1 points 22 hours ago

Granted. "Arbitrarily large" would probably be a better phrasing: if I buy a stock for $100 and the value drops to $0, I'm out $100. Can't lose more money than I put in. What I meant is that short positions, by their nature, don't have this ceiling on the amount of money you lose.