Mögen die Hedgies untergehen: Gold Short Squeeze
At $1250 gold, a single 100-ounce futures contract controls $125,000 worth of the metal. But traders don’t have to put up the full $125k to play. The minimum maintenance margin on COMEX gold futures contracts these days is just $8k. This means the maximum leverage available to aggressive gold shorts is 15.6 to 1! Stock traders can scarcely comprehend that, as stock margin has been legally limited to 2 to 1 since 1974.
At maximum leverage, a mere 6.4% gold rally would wipe out 100% of the capital risked by gold shorts! While not all futures traders run with minimum margin, plenty do. The faster that gold rallies, the more pressure it puts on these guys to buy offsetting futures longs to cover. Short squeezes are born when just a small fraction of traders are forced to cover, unleashing buying pressure that sucks in many more.
Wenn der Goldpreis nur um 6% steigt, verlieren die Shorter ihr eingesetzten Kapital an der COMEX.