Increasing volatility means investors could experience larger fluctuations in the size of their accounts, and higher margin requirements help the exchange's clearinghouse ensure trade obligations are met.
|GLD||SPDR GOLD SHARES TRUST - EUR ACC||153.02||-2.65||-1.70%|
|SLV||ISHARES SILVER TRUST||17.37||-0.71||-3.95%|
Gold speculators must pay an initial margin requirement of $10,230 to open a position in a contract and $9,300 to retain that position, up from $9,570 and $8,700, respectively. Hedgers and members are required to meet initial margin and maintenance margin requirements of $9,300, up from $8,700.
Meanwhile, silver speculators must pay an initial margin requirement of $14,575 and a maintenance margin of $13,250. Hedgers and members must pay initial and maintenance margins of $13,250.
Margin requirements are larger for silver than for gold because of the notoriously volatile nature of its price due to lower liquidity and its supply and demand dynamics.
Front-month Comex gold futures plunged $91.80, or 4.91%, to $1,932.60 an ounce on Tuesday, while front-month Comex silver futures sank $3.212, or 11%, to $26.037 an ounce. Both drops were the largest on a percentage basis since mid-March.