Posts Tagged ‘margin’

All quiet on the margin front

On Thursday May 24th, the CME Group, the world’s largest commodities exchange, cut margins for trading gold, crude oil, RBOB gasoline and lean hog contracts, effective after the close of business on Tuesday , May 29th.

Initial margin on trading 100-ounce gold futures is to be lowered by 10% to $9,113 per contract from $10,125, the second cut this year. Margins for trading gold have dropped by 21% this year, including a cut in February. The drop of $1,012 per contract in gold margins when it is attributed to the total open interest positions is equivalent to nearly $1 billion less in margin escrow.

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