Why is Silver (/SI) futures margin requirement so high? $18,700 on ToS?

Why is Silver (/SI) futures margin requirement so high? $18,700 on ToS?

Higher than /GC, /ES and many others.

 

SI futures have been traditionally very high across the exchanges. Dunno why. It is what it is.

 

you can always trade the /SIL instead.

 

Thanks guys! I didn't know about /SIL.

 

Did you even think to look at the CME margin? Maintenance Margin is $17,000/Futures so Initial is $18,700.
https://www.cmegroup.com/trading/me...de=SI&sector=METALS&exchange=CMX&pageNumber=1

 

dax margin requirement is even higher at 44K euro.

 

In finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty.

Uncertainty, volitility?
beyond that what might it be?

https://en.wikipedia.org/wiki/Margin_(finance)

 

Legacy from the Hunt brothers?

 

SIL is the Comex Silver mini contract (1,000 Troy oz vs. the standard 5,000 Troy oz), so the margin is one fifth the standard (Only at $3.7K maint.) @IB.

 

Some brokers will offer lower day trading margins if you are looking to get in and out.

We offer few different platforms with day trading margins of $1000 to $5000 on silver as long as you are fully margined or flat by 3:55 PM central time.