CME IS RAISING MARGINS AGAIN! THIS IS NOT JUST A NUMBER, BUT A WARNING!
From today, February 2nd, the world's largest derivatives exchange, 'CME Group', is raising margin requirements for precious metal futures for the second time in the last 4 days. Document #26537 | [Officially on the CME Group website](https://www.cmegroup.com).
In simple terms, this means:
1. Margin is the amount that a trader must deposit to open or maintain a position. If the margin sharply increases, panic has begun in the market.
2. A sharp increase in margin is a signal that the exchange is trying to protect itself from the risk of a chain liquidation. This occurs only when someone big is struggling.
3. Friday's price drop is not an ordinary correction, it was a violent market cleanup. And those who did not manage to add margin were simply thrown out of their positions. This may have caused the sharp collapse.
4. This is what happened in 2008 and 2020 (before market crashes).
How much has the margin increased now:
• gold: +33%;
• silver: +36%;
• platinum: +25%;
• palladium: +14%.
Obviously, someone big is on the brink of collapse. Therefore, exchanges are now even more hedged against a chain of bankruptcies. And this may just be the beginning, the next blow will be to the stock markets and banks.