east asia minerals gold silver
East Asia Minerals – An Indonesian Value Play in Gold and Silver
July 22, 2020
golden triangle o&m partners gold silver pros
Like a Phoenix, The Golden Triangle Rises Again
July 25, 2020

Shorting Silver Just Got a Lot More Expensive

silver shorters margin comex futures

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