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by onlyrealcuzzo 17 days ago
You can short it elsewhere.

Schwab won't let you, because even if you're 95% right, you'll still probably lose 95% of your money...

It's quite difficult to be 100% right...

1 comments

You and your broker have to be pretty damn brazen to iron grip a highly liquid stock all the ways down to -95%.
Shorts can go down to -1000% and beyond.
Yes, but you have to hold through that, and your broker also needs to let you hold through it.

The risk of a stock like spaceX gapping up 10x in an instant is virtually zero.

So if I wouldn't lend someone 9 times their assets I can't let them have that position.
Yes, but you have to hold through that, and your broker also needs to let you hold through it.
Not true: Depending on product and regulatory regime, for distinct trader/customer groups there may be distinct rules.

And if you are buying an instrument where you can lose more than you invested, the approach maybe wrong? :-)

> And if you are buying an instrument where you can lose more than you invested, the approach maybe wrong? :-)

This is precisely why shorting can lose more than you "invest", because you're not buying an instrument, you're selling it with the intent (or promise, depending on what kind of instrument it is) to buy it back later, hopefully at a lower price.

The risk is unbounded.

Not true:

https://en.wikipedia.org/wiki/Turbo_(finance)

There are, as said, depending on juristic regime, products which do not let you lose more than you invested.

On top of this comes national regulation: E.g. in some EU countries, retail traders are exempt from s.c. "margin calls" and the broker is required by regulation to "just close and not ask for more"

Source: Im living in one of these EU countries

I'm not familiar with turbos, but to me it sounds like a CFD? How does a short position on a turbo prevent you from losing more than what you "put in"[0]? If you're shorting underlying X at price Y with a turbo, and price moves to Y+10, you're going to lose 10 times the leverage factor. You could have stop orders, but those are not guaranteed to fill at a price that would cap your loss to a desired amount.

> the broker is required by regulation to "just close and not ask for more"

Some American brokers will also forcibly close your position instead of issuing a margin call. Do you mean that under those national regulations, the broker is required to eat the losses?

[0]: in quotes, since with a short position it's not really the case that you put something in.

A turbo is not a short position. It is more similar to an option.
dang all these comments make me want to short more. gimmie your monies!

a company who says we'll have ai in space, meanwhile you can stick ai in the ocean and use ocean water to cool & still have access for upgrade cycles.

meanwhile china and japan and bezos all landing reusable rockets.

meanwhile maybe ai runs locally on phones (today's announcement of deepseek in the iphone in china)

ummmm. short in force!

...downvoted 2 times for telling the truth about EU or LATAM regulatory regmies, wow,thanks :-D