Is nickel trading on the LME?
The LME suspended trading in nickel, a crucial material for electric car batteries, on 8 March after prices doubled over the course of a day to a record $100,000 (£76,200) a tonne.
What is the initial margin for futures?
Initial Margin The initial futures margin is the amount of money that you need in order to open a buy or sell on position on a futures contract. 7 Initial margin is also called “original margin,” or the same amount posted when the trade first takes place.
What is LME grade nickel?
LME Nickel stands for a group of spot, forward, and futures contracts, trading on the London Metal Exchange (LME), for delivery of primary Nickel that can be used for price hedging, physical delivery of sales or purchases, investment, and speculation.
What is contingent margin?
This contingent Variation Margin will result from the difference between the Market Delivery Settlement Price for the Contract under tender and the Settlement Price for the next maturing Contract Set of otherwise equivalent specifications.
Why did the LME cancel nickel trades?
The LME suspended trading activity and cancelled nickel trades on March 8 due to a spike in volatility, which saw nickel prices double to a record $100,000 per ton in the space of a few hours.
What happened on March 7 and 8 in LME nickel market?
share. Last night, nickel trading on the London Metals Exchange resumed for the first time since March 7, when three-month nickel prices closed at $US50,300 per tonne. On March 8 a colossal short squeeze saw nickel touch a truly ridiculous $US100,000 a tonne before the market was halted.
How do you calculate initial and maintenance margin?
The general formula is: Margin Call Price = Initial Purchase Price * (1 – Initial Margin percentage) / (1 – Maintenance Margin percentage). In the provided maintenance margin example, the initial margin is 50 percent (the federal minimum) and the maintenance margin is 25 percent (the FINRA regulatory minimum).
What happened on March 7th and 8th in LME nickel market?
On March 7, 26,150 lots, or 156,900 tonnes, changed hands. The LME nickel market was suspended a day later after China’s Tsingshan Holding Group bought large amounts of nickel, propelling the metal up more than 50% in a matter of hours to a record above US$100,000 (RM419,750) a tonne, sources have said.
What is the spot price for nickel?
An icon in the shape of a calendar. A vertical stack of three evenly spaced horizontal lines. The word “Insider”….NickelCommodity.
| Name | Nickel |
|---|---|
| Price | 25,399.00 |
| % | -0.88 |
| Unit | USD per Ton |
| Date | 6/16/22 10:20 AM |
What is initial margin vs variation margin?
Initial Margin is the minimum balance you need to have in your account to open a position. Variation Margin is the unrealised profit (or loss) on open positions or transactions.
How do you short a nickel?
If you are bearish on nickel, you can profit from a fall in nickel price by taking up a short position in the nickel futures market. You can do so by selling (shorting) one or more nickel futures contracts at a futures exchange.
What do you think are the reasons for LME nickel futures price spike?
The reason for the rapid rise, according to Bloomberg, was investors and industrial users buying contracts back after priced rallied. Concerns over Russian supplies of nickel led to an increase in the value of the metal, which is used in stainless steel products and also electric vehicle batteries.
Why did LME cancel nickel trades?
A spokesperson for the LME said in a statement on Tuesday that the exchange took the view that the nickel market in the early hours of March 8 had “become disorderly,” and therefore took the decision to suspend trading in nickel contracts from 8:15 a.m. U.K. time, and to cancel trades executed after 00:00 U.K. time.
Why did LME stop trading nickel?
LONDON — The London Metal Exchange said Wednesday it had been forced to halt the nickel market once again after a “systems error” allowed a small number of trades to go through below its newly imposed daily price limit. The LME said trades executed below the lower daily price limit would be canceled.
How much is initial margin?
50%
Initial margin is the percent of a purchase price that must be paid with cash when using a margin account. Fed regulations currently require that the initial margin is set at a minimum of 50% of a security’s purchase price. But brokerages and exchanges can set initial margin requirements higher than the Fed minimum.
Does initial margin change daily?
We typically change margins after a market closes because we have a full view of the market liquidity of that trading day. We provide at least 24 hours’ notice of margin changes to give market participants time to assess the impact on their position and make arrangements for funding.
What is initial margin vs maintenance margin?
The initial margin is the amount a trader must deposit with their broker to initiate a trading position. The maintenance margin is the amount of money a trader must have on deposit in their account to continue holding their position, which is typically 50% to 75% of the initial margin.
Why LME suspended nickel trading?
What is initial margin and how it is calculated?
Initial margin refers to the percentage of equity a margin account holder must contribute to the purchase of securities. In other words, initial margin refers to the proportion of the total market value of the securities purchased that must be paid in cash by the investor.
What are initial margins?
Initial margin is the percent of a purchase price that must be paid with cash when using a margin account. Fed regulations currently require that the initial margin is set at a minimum of 50% of a security’s purchase price. But brokerages and exchanges can set initial margin requirements higher than the Fed minimum.
What is nickel short squeeze?
In short, Russia is the world’s third largest nickel producer and the US and EU levied heavy sanctions on them, which prompted key Russian exports like nickel to rally and eventually develop into a short squeeze which left one “Big Shot” with a massive short nickel position into the squeeze. Drama ensues.