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<p>[QUOTE="desertgem, post: 1270969, member: 15199"]If the margin is increased 100%, it basically doubles. On this last margin increase by the CME, The initial opening margin for 5000 oz silver contract went from 21,600 to 24,975 if you are not a member of the exchange, seems about a 15.6% increase, but still a long way from full price of 0% margin of 5000 oz at approx. $30 ounce , or $150,000 of silver. So the margin is really 16% or so to hold silver contract at this time ( of course this is just for illustration as each delivery month as difference pricing usually).</p><p><br /></p><p>Gold went from a margin of $9450 for 100 oz. of gold to 11,475, a 21% increase, but still that 11,475 will initialize a contract for 100 oz of gold, and at even $1700 an ounce , that is holding $170,000 worth of gold.</p><p><br /></p><p>And for those who think margin changes are just occurring for commodities going up, (such as PM), the margin for copper, which has been slowly decreasing, but recently after China's announced slowdown, has dumped, was also raised 17.6% , to protect the CME from falling price volatility.</p><p><br /></p><p>They can change the margins to whatever they wish , up to full price, but each change will affect the volume and thus their profit, so they have to balance the profit/risks. IMO.+</p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1270969, member: 15199"]If the margin is increased 100%, it basically doubles. On this last margin increase by the CME, The initial opening margin for 5000 oz silver contract went from 21,600 to 24,975 if you are not a member of the exchange, seems about a 15.6% increase, but still a long way from full price of 0% margin of 5000 oz at approx. $30 ounce , or $150,000 of silver. So the margin is really 16% or so to hold silver contract at this time ( of course this is just for illustration as each delivery month as difference pricing usually). Gold went from a margin of $9450 for 100 oz. of gold to 11,475, a 21% increase, but still that 11,475 will initialize a contract for 100 oz of gold, and at even $1700 an ounce , that is holding $170,000 worth of gold. And for those who think margin changes are just occurring for commodities going up, (such as PM), the margin for copper, which has been slowly decreasing, but recently after China's announced slowdown, has dumped, was also raised 17.6% , to protect the CME from falling price volatility. They can change the margins to whatever they wish , up to full price, but each change will affect the volume and thus their profit, so they have to balance the profit/risks. IMO.+ Jim[/QUOTE]
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