=============== I see[''c''] your points, ChicagoC; Partial disclosure-I am not a pure pro silver speculator, meaning I dont try to make an exclusive living in silvertrades or silver investing But frankly its a favorite market; top 7 or 8 anyway.Actually I thought/wrote/April there was a REAL good chance the parabolic time price would ''sell in may/make hay........................................................ And also one of those tradres said''$50.15/contract high'' ; so $50.14- $50.17+..... or $554* , was mention on the insurance papers. Could have easily taken that nu,ber out, stopped & bear/down trended . Long term trend still looks fine; short term polar bear/panda bear
Is this a joke? Or are you trying to advertise that you are clueless about trading and investing in general, let alone commodity futures. Ok, let's say you happen to be a investor and you bought silver futures a couple months ago. Silver is up nicely. Your broker comes to you now and tells you, yeah so like, you need another $20k to maintain your account or we liquidate. What are you going to do?
hmmmm. If you bought them a few months ago , you're up huge, so you already have more than enough margin. none of these guys trade. how would they know. for the 1 or 2 lurkers , the ones that post here are way too dumb. margins go up, because they know every asshole and his half wit sister is in the market, they know price is about to shit itself, and they want to make sure the deadbeats like the posters you see here on et actually have the money to lose. simple. paste that on the wall for the next time. now you can go back to reading the rantings of Mark "I never lose at the raacetrack" Brown
I don't think that's a dumb question. Although I've seen the market turn time after time when margins are raised, I'm still not sure I understand why it happens. Your example is too simple. It ignores that for every open Long contract, there is an open Short contract, who also must meet the margin or liquidate. 'liquidate' to a short, obviously, means that he must buy back. It should affect the shorts in the market equally. Actually, I think it's likely to affect them more as the shorts are more likely in a losing position which subtracts from their equity, whereas longs are holding positions which have pumped up their equity. All things equal, I would expect the shorts to be the ones feeling the heat of the increased margins more than the longs. Not saying I'm right; it's just my idea. Can someone show me the error of my thinking?
read my post, he's not wrong, the fake et traders are wrong, as usual the diff between who's short and who's long is the key. tin foil hats are long.
Peilthetraveler: "THE COMEX IS OUT TO GET US!! SKEEEEEEEERY!!" Peil's futuers broker: "We liquidated your account, and the resulting deficit must be paid immediately" Peil: "SKEEEEEEEEEEEEEEERRRYY!" LOL I'm waiting for the next ETer with a tin-foil hat to jump out and say "BUY SILVER TOMORROW!"
$29.36 IS SUPPORT ON JULY SILVER, IN MY OPINION. Those without tin-foil hats should wait till that level to bid. What a bloodbath in oil today!!!!!!!!! HEY, WAIT A MINUTE! CME DIDN'T RAISE MARGINS ON CRUDE OIL...............SO HOW IS THIS POSSIBLE?! IT MUST BE A CONSPIRACY! THERE IS NO CRUDE OIL IN CUSHING, OKLAHOMA! CONVERT YOUR PAPER OIL TO PHYSICAL OIL!!!! THE USD TO NOTHING!!!!!!! I love you guys.
Assuming you are up more than the margin hike and also have not used it in any other positions. Which is the minority. The majority were not up more than the margin and also do not generally let a lot of margin go to waste. Now plug in a CTA, hedge fund or active futures trader. If you think that the margin hike had no effect on motivating them to sell, then I have a bridge to sell you.
Maybe you should do some research on who the heavy shorts in the silver futures markets are, and have been for over a decade.