USLVF - Shorting Silver Just Got A Lot More Expensive

We go over the increases in silver futures margins that are now being required on silver positions. The implications of this are:

• For every silver future position, an additional $1,000 has to be posted as margin.
• Margin is used when a market has more volatility, such as expecting a bigger price move in a given direction.
• The margin is used as collateral against the futures positions moving against the holder.
• In this case, the exchange is saying it expects larger-than-normal moves in the price of silver.
• Silver is the only commodity that had an increase

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