Things which can lose you more than your investment:
Options which can go a long way out-of-the-money. Short selling when vulnerable to short squeeze. Most kinds of heavily leveraged investment. Some kinds of trading that depend on volatility and liquidity. Anything with lots of unexamined counterparty risk.
Options which can go a long way out-of-the-money. Short selling when vulnerable to short squeeze. Most kinds of heavily leveraged investment. Some kinds of trading that depend on volatility and liquidity. Anything with lots of unexamined counterparty risk.
One case study is LTCM: http://www.prmia.org/sites/default/files/references/Long_Ter...
.. which is an interesting read because it's kind of a TBTF "near miss", that could have blown up the system through defaults but didn't.