So what happened with silver yesterday?
The only thing that could have happened—a massive liquidation of weak hands.
As I reported before, CME raised the margin requirements effective December 29th.
Previously, CME allowed 20:1 leverage on futures trading. The margin requirement went from 5% (20:1) to 6.5% (16:1) on Monday, instantly liquidating over levered greedy fools.
Historically CME collateral requirements have averaged 8.5%, so there is a lot of room to play with as far as increases. And CME will definitely increase margin requirements to control the market.
There is a lesson here on the responsible use of leverage. Just because somebody gives you 20:1 leverage doesn’t mean you should use it all. That’s an easy setup to get all your shit taken in a flash.
Good luck
Wishing you a strong and meaningful Christmas season. I’m sincerely grateful for your loyalty, trust, and unwavering support—it does not go unnoticed. May this time bring well-earned rest, renewed focus, and the drive to take on the year ahead with confidence and purpose. Thank you for standing with me. Merry Christmas Coach Gang!
