Wrong! Margin requirements DO go up (and down), varying commensurate with the underlying value of a particular commodity. As silver breaks out, of course margin reps need to rise. What I don’t see in the article is any commentary on whether these changes are abnormal, or out of line with what is expected in normal course. Leading me to suspect they are not abnormal. Everything is not a conspiracy. Prices fluctuate and margin requirements fluctuate accordingly. Anyone interested in the topic should read up on how stock margin differs from margin in futures markets (like those handled by cme). If the varying margin requirements are out of line, please share why, otherwise, it’s not surprising that when a commodity price swings up 20% in a matter of weeks, the margin requirements will also increase.
Wrong! Margin requirements DO go up (and down), varying commensurate with the underlying value of a particular commodity. As silver breaks out, of course margin reps need to rise. What I don’t see in the article is any commentary on whether these changes are abnormal, or out of line with what is expected in normal course. Leading me to suspect they are not abnormal. Everything is not a conspiracy. Prices fluctuate and margin requirements fluctuate accordingly. Anyone interested in the topic should read up on how stock margin differs from margin in futures markets (like those handled by cme). If the varying margin requirements are out of line, please share why, otherwise, it’s not surprising that when a commodity price swings up 20% in a matter of weeks, the margin requirements will also increase.