CME raises margin requirements by 30% within three days, the silver market faces forced liquidation risk

Source: BlockMedia Original Title: CME, 30% ‘Margin Increase’ in 3 Days… Is the Market Forcing Liquidations? Original Link: https://www.blockmedia.co.kr/archives/1027098 The world’s largest derivatives exchange, CME Group, suddenly raised margin requirements significantly for gold, silver, and platinum group metals, sparking fierce criticism from the market. Notably, the silver market increased margin twice within just 3 days, even leading to accusations of “market manipulation.”

Renowned financial analyst Thomas Young criticized CME’s move on social media, questioning whether the exchange is in a state of panic. He pointed out that raising 30% margin within less than 24 hours’ notice is an act of inducing forced liquidations in the market. He stated that although CME claims this is standard procedure, it essentially amounts to market manipulation.

Typically, margin increases force leveraged investors to either add more collateral or face forced liquidation. This exerts downward pressure on prices.

The market is particularly attentive to the coincidence of this margin hike with China’s restrictions on silver exports. Against the backdrop of supply chain instability and rising silver prices, the exchange’s decision to raise margins is analyzed as an attempt to weaken buyer power.

Investors are currently focused on the market performance on the first trading day of the new year (January 2). Thomas Young predicts that if the market can overcome the pressure of CME’s artificial margin increase and continue to rise, it will signal a strong bull market driven by supply shortages.