### Comment:
so if they backed out of the contract they swallow the loss right?

### REPLY:
Well now since the broker loaned you the money, you now owe the broker.  If they had warned him of the risks beforehand it would be a clear cut margin call and OP is truly screwed, but they didn't so things are a bit in the air (still very safe to buy puts on his prospects imo).

### END.