I read somewhere that trading futures (such as S&P 500, Dow, Nasdaq) has "unlimited" risk. Meaning, you can lose more than your initial capital. Is this possible even if you don't go short? I dont seem to understand how you can lose more than you started with! Will your broker even allow your account to go further down than your initial capital?
Someone please enlighten me on this.
Thanks
Someone please enlighten me on this.
Thanks