I dont understand, I thought the CME raising the margin call for Silver to 25k was market manipulation to tank it for at least a few weeks. How is it already coming back up 5% the next day? Is this the time to sell and wait for another fall? Do I hold?
>>61567006That move should have depressed the price harder than it has, which means that the market demand is higher than they thought.
>>61567021So do i hold?
Why does an exchange even care what the price is? Shouldn't it just let buyers and sellers set it?
>>61567541So you should panic and sell all your shit at the first dip so people like me can scoop it up at discount
>>61567006That's not how margin requirements work or the purpose of them. Margins have been consistently raised this entire upmove, yet no one paid attention until now.For a quick understanding, the requirement is set so that you would not be immediately stopped out because a normal move liquidated your funds. In silver, the standard SI futures contract is 5000 oz, so the margin is pricing in roughly $5 dollar moves from your entry as the high end of the expected range, or a $10 range is roughly expected.A little more precisely there are two big factors. First, the notional value of the contract. Right now, let's say $75 * 5000 = $375000. That's the notional value of the silver involved in a single contract. So $25000 is 15% of this to control this much silver. Second is the current volatility in the market, so there might be a range like 10-15% of the notional depending on the volatility.
>>61567597>Why does an exchange even care what the price is?
>>61567634One more thing, most big players are not so overleveraged that a reasonable margin increase will cause mass liquidations or maybe even any.
>>61567639Because it’s a part of the American soft power system and if American banks collapse because they made bad short bets it speeds up dedollarization
>>61567667>if American banks collapse because they made bad short betsyou can't even know what orders are openit's a literal "trust me bro" all the way to the base
silver won
