Comment: essentially yes.

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essentially yes.

but you dont get to define the amnt of money youre putting down. youre buying a contract of 5000 oz in silvers case which is well over a 200k$ contract. margin is the initial amnt you put down. think about that... thats like betting the value of your home will increase no-brainer in a year and putting down a 12% down pawment with the intentions of flipping it a year later. see how if everyone does that it could end very badly? a 100% margin rate is basically saying you have to buy the contracts full price outright (paying your house off all in cash upfront as an ex.)