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onlyrealcuzzo | on: SpaceX bond worth 10% less than issue price – heading for junk bond status
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...

WarmWash | parent
You and your broker have to be pretty damn brazen to iron grip a highly liquid stock all the ways down to -95%.
inigyou | root | parent
Shorts can go down to -1000% and beyond.
WarmWash | root | parent | next
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.

WarmWash | root | parent | next
Yes, but you have to hold through that, and your broker also needs to let you hold through it.
KellyCriterion | root | parent
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? :-)

gottorf | root | parent | next
> 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.

KellyCriterion | root | parent | next
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

formvoltron | root | parent
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!

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