What is the maximum loss an equity CNC trader can face on a trade?

General
1

E.g. I have 2lkh capital and I buy 2000 shares @100 RS.
Is there a scenario where I might lose more than 2lkh on the trade?
Theoretically speaking if the price drops from 100 to zero I would owe 2lkh plus brokerage and other charges but I have heard in FnO there can be a situation where if the trade goes bad you might owe more money than investment + brokerage charge?
So, only in equity, suppose price of the share drops from 100 to zero can there be a scenario where I might have to pay more than investment + brokerage?

Thanks.

3

Thanks for the reply. :+1:t4:. Also I don’t invest in BSE stocks only NSE that too in companies with good fundamentals, but I did not know the bit about illiquid stocks. It took me a few seconds to understand the last para I will DEFINITELY keep this in mind even though I don’t intraday trade with high leverage but one should definitely keep this in mind. Massive thanks. :pray:t4:.