IB to increase silver margin to "scary" levels

30,600/contract vs 16,200 exchange min.

 

i did not know the volume dropped on Futs.

then the money moved from the futures into ETF, the liquidity is still here.

 

isn't it comparable to ES? 1 SI is equal ~$200K i heard.

 

IB is probably short silver against all/most their customers' leveraged longs...

 

5,000 oz.

 

CME just raised margins again to 18,900 effective Thur 5/5 and then 21,600 on Mon 5/9:

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-159.pdf

 

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Something like that But with the oz/contract high getting close to $50/oz/$250,000+/, thats more than the average Nashville house costs

Its a little bit like some bankers deciding to require some equity again.ES maybe a bit more diversified.

 

Less margin means less leverage, which implies less demand and more supply (due to margin calls). That is the trigger. The momentum trader and stop loss orders on longs add to the supply. Add fear from longs, and you have a picture.

 

If you are using enough leverage that this matters to you, then you're taking on crazy risk and deserve to blow up anyway.

Seriously, who even goes 100% long with no leverage in a market that is swinging 10% in a morning?

 

Wow a whole 21k on a contract with $180k face value. God knows how anyone can afford a position with such onerous margin requirements