CME: Increased Margins for Silver and Platinum – The Stock Exchange Pulled the Hand Brake

[Igor Pereira]

The CME Group (the owner of COMEX and NYMEX) has just issued a Official margin increase notice (Performance Bond Requirements) for Silver, Platinum and Palladium, valid for the closing of tomorrow, Wednesday, January 28.

By Igor Pereira Financial Market Analyst

This is not a coincidence; it is a direct response to the price explosion we are looking at today. Below, what this means for your pocket and for the volatility of the next 24 hours.

The CME has increased capital requirements to maintain open positions. This forces leveraged traders to deposit more money or close positions (sell).

• Silver (Silver - SI): The initial margin for speculators (Non-HRP) rose from 9% to 11%. A capital cost increase of more than 20% overnight.

• Platinum (Platinum - PL): The margin jumped from 9% to 12%. An aggressive grip of 33%, reflecting panic with the historical rupture of Platinum.

• Palladium (Palladium - PA): Increase in 11% to 14%.

Historically, margin increases are used to burst speculative bubbles or brake vertical trends.

• The Mechanism: Small, overgrown traders will not have the extra money ("Free Margin") to cover the new requirement by tomorrow night.

• The Consequence: They'll get one Call of Margin (Margin Call) and will be automatically liquidated by brokers. This creates artificial sales pressure in the short term. Wait for violent wicks down in the next 24 hours.

Although it causes pain in the short term, this is extremely bullish (higher) in the long run.

• The Signal: Scholarships only increase margins aggressively when they recognize that volatility has exploded and that the risk of uncontrolled discharge is real. They are trying to protect the clearing chamber from breaking, not necessarily "manipulate" the price down forever.

• Opportunity: If there is a price dive (Dip) tomorrow due to these forced settlements, it will be an opportunity for institutional purchase. The physical foundation (scarry in China) has not changed a millimeter.

The cheap leverage party is over. Now, only the strong stay on the table.

My Vision: Tomorrow (28/01) will be a day of cleaning.

1. Reduce Leverage: Whether you are operating future or CFD Silver/platinum very heavy, make partial profits or deposit extra margin today. Don't expect the broker to close your order tomorrow.

2. Buy Blood: If the Silver falls to test the $104 or Platinum retreat to $2,800 Because of that, buy it. It's just a paper adjustment, not value.

---

Premium access: The Survival List

Our members Premium received an updated margin calculator to know exactly how much "Free Margin" they need to keep in order not to be liquidated tomorrow.

Ensure your place in the elite market: "> CLICK HERE TO ACCESS THE PICTURE