Make Kitco Your Homepage

CME Group Hiking Margins On Comex Gold Futures As Of Friday Close

(Kitco News) - CME Group is raising margins on gold futures as of the end of business on Friday, the exchange operator reported.

The “initial” margin for speculators on the Comex division of the New York Mercantile Exchange will rise to $4,675 from $javascript:window.document.newsAddEditForm.submit();4,125. The “maintenance” margin for existing accounts, as well as all hedge accounts, will increase to $4,250 from $3,750. The margin will also change for smaller-sized contracts.

Margins act as collateral for holders of positions in futures market, with traders putting up only a small percentage of the total value of a contract. In a notice late Thursday, CME Group said the increases were “per the normal review of market volatility to ensure adequate collateral coverage.”

A link to the full notice for the gold margins, as well as margin changes in a number of other markets, can be seen right here.

By Allen Sykora of Kitco News;



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news