Unlimited Risk

Unlimited Risk

The risk that one's loss on an investment will be larger than the amount one originally invested. For example, in short selling one will lose money if the short sold security rises in price. Because the potential rise in price is theoretically infinite, one may lose much more than one invests. Likewise, a general partner of a company has unlimited liability, meaning that in the event of bankruptcy he/she must pay all debts the company incurs regardless of how much he/she invested in it. See also: Limited liability.
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Speaking on the issue of Bitcoin which is registering record heights worldwide, Reddy said that there has to be a sovereign behind fiat money as only the sovereign can take unlimited risk and has the capacity to withstand strain.
So-called 'zero-cost' or 'zero-premium' options, which sound attractive in terms of initial upfront cost (there isn't one), should be treated with extreme caution-- zero-cost usually means unlimited risk.
Long straddle provides opportunities for unlimited rewards and limited risk, whereas short straddle offers limited rewards and unlimited risk.
Saliba discusses which strategy to employ, the nuances of each, how to manage the position, when to exit, and how to use spread strategies that offer limited or unlimited risk.
Short sales may help hedge against general market risk to the securities held in the portfolio but theoretically present unlimited risk on an individual stock basis, since the Fund may be required to buy the security sold short at a time when the security has appreciated in value.
Unlike the large, unlimited risk products offered by traditional futures exchanges, Nadex contracts are not margined - they are fully-paid upfront and they have limited risk/reward profiles that are attractive to both start-up and seasoned traders.
There are too few straightforward, affordable opportunities - and too many trading vehicles have unlimited risk of loss.
Do not take the covered call position without first owning at least 100 shares of the stock or you will be exposed to unlimited risk has assembled the best investment experts in the business to offer their powerful advisory newsletters on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc.
You must own at least 100 shares of the stock for each covered call contract you write or you will be exposed to unlimited risk has assembled the best investment experts in the business to offer their powerful advisory newsletters on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc.
Do not take the covered call position without first owning the underlying stock or you will be exposed to unlimited risk.
By committing Europe's biggest economy - and already its effective paymaster - to the ESM, parliament was essentially exposing Germany's public finances to unlimited risks should one eurozone country after another topple under the debt crisis, they argued.