IB to increase silver margin to "scary" levels

[peilthetraveler]

http://www.zerohedge.com/article/in...nknown-certainly-scary-silver-margin-increase

In an effort to adequately address the inherent risk resulting from this volatility, we are increasing margin requirements on silver derivative contracts to a level EXCEEDING that which the exchanges are implementing


This will help silver take another nose dive into the mid to low 30s.

 

[Scataphagos]

Quote from peilthetraveler:

http://www.zerohedge.com/article/in...nknown-certainly-scary-silver-margin-increase

In an effort to adequately address the inherent risk resulting from this volatility, we are increasing margin requirements on silver derivative contracts to a level EXCEEDING that which the exchanges are implementing


This will help silver take another nose dive into the mid to low 30s.

IB account holders should appreciate this action... helps to protect customers as well as IB.

 

[shortie]

Quote from peilthetraveler:

http://www.zerohedge.com/article/in...nknown-certainly-scary-silver-margin-increase

In an effort to adequately address the inherent risk resulting from this volatility, we are increasing margin requirements on silver derivative contracts to a level EXCEEDING that which the exchanges are implementing


This will help silver take another nose dive into the mid to low 30s.

i hope you wrote some calls last week against your silver Long

 

[The Big D]

I think everyone who doesn't trade silver via IB can agree this is a very good idea.

 

[benwm]

I actually hope they ramp up margins on a load of commodity futures because we'll get some great volatility.

 

[veritas007]

why does increasing silver future margins cause the price to go down. Are there more leveraged players long the market?

 

[The Big D]

Quote from veritas007:

why does increasing silver future margins cause the price to go down. Are there more leveraged players long the market?

You didn't really think all these people buying silver well above the cost of production were sober investors with sufficient capitalization, did you?

 

[peilthetraveler]

Quote from benwm:

I actually hope they ramp up margins on a load of commodity futures because we'll get some great volatility.

Its strange isnt it? They increase margins because of the volatility which in turn reduces liquidity, which increases volatility which is the very reason they say they are increasing margins in the first place.

 

[shortie]

Quote from peilthetraveler:

Its strange isnt it? They increase margins because of the volatility which in turn reduces liquidity, which increases volatility which is the very reason they say they are increasing margins in the first place.

what reduced liquidity are you talking about? SLV today has more volume than SPY

 

[increasenow]

Quote from shortie:

what reduced liquidity are you talking about? SLV today has more volume than SPY

Comex Silver futures, not the Silver ETF is what he is talking about...