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/biz/ - Business & Finance

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3341601 No.3341601 [Reply] [Original]

Hey, new here and new to shares in general. It's a pretty intimidating game full of jargon for a noob but I'm giving it a shot.

I have a big question on my mind though that FAQs and google isn't solving which I want to know given I'll be staring with 100gbp, the minimum, and want to be sure.

What happens if you go below your deposit amount? So say I put 100 into my account and invest in something. Let's say that stock price goes down so that if I sold I'd make a loss. What happens if it goes below my 100? What options are open for me? Am I in debt? Do I need to pay into my account to offset? Can I wait until there's a rebound if I'm playing long term?

Thanks guys

>> No.3341832

Bump? Anyone know? Help a brother out

>> No.3342155

>>3341601
You can never be in debt unless your do stupid shit like shorts and longs

>> No.3342299

>>3342155

How do you mean? I'm an utter noob so you'll have to talk to me like I'm autistic.

So if I put 100 into my account to start off, invested that 100, then tried to sell off my stock after it dipped below that what would happen?

>> No.3342323

>>3342299
If you have 100 good boy points in your coinbase(or whatever) account and use them to buy .01 btc and then btc drops and you sell coinbase will give you 50 good boy points

>> No.3342382

>>3342299
Dude

You know how 100% of x is equal to x?

So if a stock goes to 0 it goes down 100%

So if you put 100 into it and it goes to 0 then you lose 100% of what you have put into it, i.e. 100

And since a stock never goes below 0 then you never lose more than what you have put in if you simply invest in stocks

>> No.3342410

>>3342299
You'll never ever be in debt, the most you'll lose is the amount you first put in and even then you'll never lose 100%

It's a game of percentages my friend. Even if it drops in price by 50% every single day it'll never ever hit zero. As long as you don't fuck around with margin trading or anything.

(Note, this does not take into consideration the fees charged to trade, which may or may not end up losing you money if you don't make a profit.)