Worst Case Scenarios?

[VielGeld]

Hey all, I'm trying to find out what is the worst that can happen in any given trade.

I know of the following:

Broker: Loss of entire account.

Computer/internet/etc.: It blows up, lol.

Stocks: Loss of entire investment. (If using margin, then twice the investment?)

Options: If a buyer, what you paid for the option. If a seller, unlimited if not a spread.

For the rest, I'm not so sure.

Futures: Unlimited loss even with stop? (Trapped by lack of liquidity and can't get out or something?)

Currencies: Unlimited loss even with stop? (The currency gets pegged against you or something?)

Taxes: Capital losses are taxed?

Etc.

Thanks!

 

[CityTrader]

I presume you are talking about margin trading on currencies? then look at the risk value - that in theory is your black swan. Same with futures ( the asset in theory could go to zero between one trading sessions close, and the next open, rendering your your stop loss useless)

 

[ph_trader]

Worst case scenario I guess would be trading during a signal number 4 typhoon here in south east asia. aside from blowing up my pc during a power blackout, I lost big time in one of my ongoing trades with no means of stopping it. it was a dilemma.

 

[sj8070]

Futures: long - limited by £ per pip * total pip, short - unlimited

Currencies: same- long is limited short isn't

Tax:don't know what you mean

Seller of an option doesn't always have unlimited loss e.g. Sell a put option