Can Your Option Trade Go Negative?

Your account can go negative on option trading when you’re selling calls & puts. Your max loss potential is unlimited.

You cannot go negative if you’re buying calls & puts. You have a max loss limit, which is the initial investment you put in.

What Happens If Your Brokerage Account Goes Negative?

If your brokerage account goes negative, your broker can request for you to add more funds or it can hold the right to liquidate your entire account.