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<p>[QUOTE=&quot;medoraman, post: 1476746, member: 26302&quot;]It was putting pressure on the price, though, but I agree the major cause was margin change.</p><p><br /></p><p>Btw, I will reiterate, the CME does not really care where the price goes in my view. They make money on trades, and only wish to facilitate trades. The margin requirements are not changed in a back room full of nefarious plots, I was told the volatility calculation is publicly published. Anyone wishing to keep track of the volatility of a market can do so, and plug it into the model the CME uses and SEE when the exchange is going to lower or hike margin requirements. </p><p><br /></p><p>The CME makes money on the float of the money changing hands on the trades. However, they MUST ensure all of the money is there every day for the trades, hence they raise margins when volatility measures increase. </p><p><br /></p><p>WAY too many people will tell know the exchange &quot;bankrupted&quot; the Hunts by raising margin rates. To me, it was simply the Hunt&#039;s not paying attention to volatility measures they should have known would have led to margin increases.[/QUOTE]</p><p><br /></p>

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