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<p>[QUOTE="medoraman, post: 1819349, member: 26302"]No idea. I just posted it since a LOT of people made a HUGE deal when they increased the margins when silver was higher. I simply wanted to post for people's education that margin requirements also move lower, when there is lower risk in the market.</p><p><br /></p><p>The purpose of margin requirements is for the CME, not for anyone buying or selling. The CME has to make everyone whole, so they have to ensure there will also be money there to settle. When markets are more volatile, mathematically this requires higher margin requirements. When markets are very steady, such levels of margin are not required.</p><p><br /></p><p>Like a lot of my other posts, its intended to educate people how markets really work, so they are not misled in other market conditions that every action must by definition be "manipulation".[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1819349, member: 26302"]No idea. I just posted it since a LOT of people made a HUGE deal when they increased the margins when silver was higher. I simply wanted to post for people's education that margin requirements also move lower, when there is lower risk in the market. The purpose of margin requirements is for the CME, not for anyone buying or selling. The CME has to make everyone whole, so they have to ensure there will also be money there to settle. When markets are more volatile, mathematically this requires higher margin requirements. When markets are very steady, such levels of margin are not required. Like a lot of my other posts, its intended to educate people how markets really work, so they are not misled in other market conditions that every action must by definition be "manipulation".[/QUOTE]
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