IB to increase silver margin to "scary" levels

Quote from increasenow:

Comex Silver futures, not the Silver ETF is what he is talking about...
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i did not know the volume dropped on Futs.

then the money moved from the futures into ETF, the liquidity is still here.
 
Quote from shortie:

isn't it comparable to ES? 1 SI is equal ~$200K i heard.
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Something like that:cool: But with the oz/contract high getting close to $50/oz/$250,000+/, thats more than the average Nashville house costs:D

Its a little bit like some bankers deciding to require some equity again.ES maybe a bit more diversified.
 
Quote from veritas007:

why does increasing silver future margins cause the price to go down. Are there more leveraged players long the market?
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Less margin means less leverage, which implies less demand and more supply (due to margin calls). That is the trigger. The momentum trader and stop loss orders on longs add to the supply. Add fear from longs, and you have a picture.
 
If you are using enough leverage that this matters to you, then you're taking on crazy risk and deserve to blow up anyway.

Seriously, who even goes 100% long with no leverage in a market that is swinging 10% in a morning?
 
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