ChainChampion_
CME has announced a significant increase in margin requirements across precious metals futures. Here's the breakdown: gold margins are up 9%, while silver faces a steeper 30% hike. Platinum and palladium aren't spared either, with requirements rising 25% and 22% respectively.
The timing raises eyebrows—these moves could serve as a mechanism to cool down the ongoing rally by forcing traders to keep more cash locked in their accounts. Higher margin requirements effectively reduce leverage capacity, which typically pressures prices as participants are forced to liquidate or reduce their positions
The timing raises eyebrows—these moves could serve as a mechanism to cool down the ongoing rally by forcing traders to keep more cash locked in their accounts. Higher margin requirements effectively reduce leverage capacity, which typically pressures prices as participants are forced to liquidate or reduce their positions