Going broke in margin acct. and owing money

[ironchef]

A margin account is required only if you write options... because in theory your risk is unlimited. Even if its a multi-leg strategy with limited risk. Purchases of puts/calls however come directly from, and are limited to, the cash side of your account.

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I assume thats basically because with an option you can lose 100%, whereas with stocks they can define a reasonable margin risk.

We are in agreement here.

I was referring to writing naked options. You won't be losing $300,000 in your margins account if you only long options.

 

[zdreg]

sometimes when you think something is a sure bet, it can go sideways.

sideways is a humorous choice of words.

 

[Cabin111]

That all depends on which state said debtor resides. If you have a house.... make sure your wife's name is on the deed too. That pretty much makes keeping your home out of judgements levied against you bullet-proof. Might be hard to do ex post facto though.
If all else fails...max out every credit line you have on Bitcoin and skip town.

Former Realtor from California here. I saw two notes and deeds of trust use "nondischargeablity" clauses in the loans. I wrote one and my father in law wrote one. One was on a CPA's house (should have know better). The other was on a used car lot...Business. I don't know what the BK judge would say when faced with these loans?? We tried it as an extra coverage, but again you are dealing with federal and state issues...