You need to understand you’re playing against “the House”.\u00a0\u00a0 Should you accidentally wind up with a winning hand, the House can change the rules.\u00a0\u00a0 They just announce that a full house beats 4 of a kind, and you lose.<\/p>\n
The CME\/Comex just raised the margin requirements on gold futures contracts to stop the price from going up.\u00a0\u00a0\u00a0 If that doesn’t work, they’ll increase it more.\u00a0\u00a0\u00a0 When the margin gets to 100%, then they’re out of business because the “Cash” market for gold is setting the price, not the futures market.<\/p>\n
http:\/\/www.marketwatch.com\/story\/cme-hikes-gold-margins-but-prices-still-rising-2011-08-10<\/a><\/p>\n (very unlikely, but not impossible)<\/p>\n This isn’t actually as bad as I make it sound.\u00a0\u00a0\u00a0 The higher the price of gold goes, the more likely there will be a very fast plunge.\u00a0\u00a0 The exchange has to protect itself, since it guarantees that if a trader has been really stupid, they’ll jump in and pay off the loss.<\/p>\n","protected":false},"excerpt":{"rendered":" You need to understand you’re playing against “the House”.\u00a0\u00a0 Should you accidentally wind up with a winning hand, the House can change the rules.\u00a0\u00a0 They just announce that a full house beats 4 of a kind, and you lose. The … Continue reading