Shorting Silver Just Got a Lot More Expensive

We go over the increases in silver futures margins that are now being required on silver positions. The implications of this are:

• For every silver future position, an additional $1000 has to be posted as margin;
• Margin is used when a market has more volatility, such as expecting a bigger price move in a given direction;
• The margin is used as collateral against the futures positions moving against the holder;
• In this case, the exchange is saying they expect larger than normal moves in the price of silver;
• Silver is the only commodity that had an increase in margin requirements, whereas every other commodity was not changed or margin was reduced;
• We infer that larger silver moves are coming on the futures market;
• And the silver shorters will have to put up more money to expand their positions against the silver bulls.

Social Media Links:

Instagram: https://www.instagram.com/goldsilver_pros/

Twitter: https://twitter.com/goldsilver_pros

Click this button to subscribe for more updates like this one Subscribe