CME raises margin requirement on Ag, Why the selloff? [Newbie] - MarketTicker Forums


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User Info	CME raises margin requirement on Ag, Why the selloff? in forum [Newbie]
Friar_tuck Posts: 1118 Incept: 2008-01-09 N. Cal	Specifically how does raising the margin from 5,000 to $6,500 induce that selloff yesterday? The CME did this right before Au hit $1,000 and it didnt stop the parabola then... So, what I'm wondering is, how does raising the margin a small amount force some players to sell? Or does it? 2010-11-10 12:07:43 Permalink
Genesis Posts: 131439 Incept: 2007-06-26	Depends on how leveraged you are. If you're up to your balls in contracts and can't hold 'em with the margin change, you're forced to sell some of them. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2010-11-10 12:13:12 Permalink
Friar_tuck Posts: 1118 Incept: 2008-01-09 N. Cal	Ok thanks, so could Schwab raise Margin requirements retroactively and force me outta positions too? 2010-11-10 12:18:07 Permalink
Genesis Posts: 131439 Incept: 2007-06-26	Yep ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2010-11-10 12:25:56 Permalink
Matt Posts: 5358 Incept: 2007-06-26 Bothell, WA	A lot of people seem to be bitching about it being a conspiracy to kill the rally by the CME. The action the CME took was the prudent thing for them to do given the increased risk. You don't want the bottom to fall out and people not to be able to make margin calls. ---------- I love the smell of burnt pump monkey in the morning. -Etz 2010-11-10 12:26:26 Permalink
Genesis Posts: 131439 Incept: 2007-06-26	How about this? Don't use leverage and then you don't give a ! ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2010-11-10 12:29:25 Permalink
Throxxofvron Posts: 10448 Incept: 2009-02-17 Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off	Shaking out the Small Players. GS and BlackCock can afford to post an extra $15M or $20M when the Margins are hiked; Small Players get ***ed with Margin Calls and Dumped Holdings. Not sayin' I think playing on margin is smart for Anyone* ( I NEVER do it ); just sayin' that Big Playas have the bones to take the pressure of hiked margin and margin calls, so the Small Traders get ***ed a lot harder or kicked off the Trade a lot faster than the Banks, Institutions, Hedgies, etc.... ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides �During times of universal deceit, telling the truth becomes a revolutionary act.� -George Orwell Last modified: 2010-11-15 19:13:49 by throxxofvron 2010-11-15 19:12:23 Permalink*
Bozonian Posts: 19956 Incept: 2007-09-01 Saratoga Springs, New York	Silver has had 2 of these parabolic blow offs before (since 2002) http://www.kitco.com/lfgif/ag2920lf_ma.g.... The first one resumed rising after a 50% retrace. The second, collapsed pretty badly. I'm hoping this recent one bounces at 24 and no less. ---------- The most expensive thing you can have is a closed mind. -- Geoffrey Filburt Everything I write is my opinion and not to be considered proven fact. Nothing I write should be considered financial advice. 2010-11-15 21:10:32 Permalink
Ampsucker Posts: 1510 Incept: 2009-08-05	hey, how 'bout giving us who want to add to our positions a nice little window, boz? jeez.... ;-) i'm looking for 17 again! doesn't silver have a trend of going to yearly lows in early spring like jan/feb/march? 2010-11-16 08:28:44 Permalink
Asimov Posts: 104646 Incept: 2007-08-26 East Tennessee Eastern Time	Both /SI and /GC had margins raised as well as a few others including trade at settle contracts. http://www.cmegroup.com/tools-informatio.... ---------- It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente. 2010-11-16 08:30:46 Permalink
Oldno7 Posts: 2159 Incept: 2008-11-14 RECALL STATE USA	We can all agree that I don't know much about trading but there were lessons learned back around the 1987 & Y2K crash and these rules (lessons) should be followed: Rule #1 Don't use margin. Rule #2 Never forget Rule #1. I would also add that I think it is not fair to change the margin limits in the middle of the game for those who use margin which should make Rules #1 & #2 even more important fair or not. ---------- IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW. When people lose everything and have nothing left to lose they lose it -Gerald Celente 2010-11-16 08:45:24 Permalink