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Can Somebody Explain Margin Hikes?
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<p>[QUOTE="desertgem, post: 1168474, member: 15199"]The margin is usually determined by the interest rate the brokerage or commodity exchange themselves have to pay and the volatility of the stock or commodity. Silver has had an enormous volatility and such has had the margin changed often. This protects the brokerage or exchange from being caught too much on the wrong side of a trade, and is not manipulation , because the increase in margin is known several days in advance to the players, and on the commodity exchanges sites where few amateurs visit. Gold has had a relatively low volatility, and thus less margin changes.</p><p><br /></p><p>When you have a margin account, you have to be aware of how close you are to the edge, so you are not forced to sell into a bad market if a call comes. Also you can't withdraw cash from a margin account until the account is clean ( nothing on margin). I keep at least one non margin account for cash storage/movement. You never know when you need cash quickly <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1168474, member: 15199"]The margin is usually determined by the interest rate the brokerage or commodity exchange themselves have to pay and the volatility of the stock or commodity. Silver has had an enormous volatility and such has had the margin changed often. This protects the brokerage or exchange from being caught too much on the wrong side of a trade, and is not manipulation , because the increase in margin is known several days in advance to the players, and on the commodity exchanges sites where few amateurs visit. Gold has had a relatively low volatility, and thus less margin changes. When you have a margin account, you have to be aware of how close you are to the edge, so you are not forced to sell into a bad market if a call comes. Also you can't withdraw cash from a margin account until the account is clean ( nothing on margin). I keep at least one non margin account for cash storage/movement. You never know when you need cash quickly :) Jim[/QUOTE]
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