cme increases margin requirements to 100%, page-6

http://traderdannorcini.blogspot.com/2011/11/cme-group-hiking-margins-across-board.html

comment posted here

.and the CME Group just said, "No more leverage".

Not quite. They said "you can still buy a $175,000 gold future contract for $11,475, but we're raising the maintenance margin from $8500 to $11475, getting rid of your $2975 loss-cushion."

I actually think this is bullish for gold because it's been going up recently. The short side, because it's been losing the past week, will have to add disproportionately more margin than the long side. The long side will have the initial margin plus the recent profit on account with CME, so they won't have to deposit any more money. The short side will have the initial margin minus the recent loss on account (below $11475 and above $8500), and since maintenance is now being raised from $8500 to $11475, they will have to deposit the extra funds. So a lot more shorts (than longs) will have to either 1) deposit more margin or 2) liquidate their position (buy back gold futures).