Shanghai Futures Exchange Tightens Margin Requirements for Precious Metals Trading

FUD_Vaccinated · 2026-02-22T10:10:22+00:00

The Shanghai Futures Exchange has adjusted margin and price limits for gold and silver futures to enhance market oversight and stability. Gold futures see a 17% price limit and higher margins, while silver futures face a 20% limit and steeper increases, reflecting differing risk profiles.

FUD_Vaccinated

2026-02-22 10:10:22

Abstract generation in progress

In a significant move to strengthen market oversight, the Shanghai Futures Exchange has rolled out substantial adjustments to margin and price limits affecting gold and silver futures contracts. The new policy took effect from the close of trading on February 9, 2026, and introduces differentiated margin structures designed to enhance trading discipline and protect market participants.

Gold Futures: Higher Margin Requirements for Stability

For gold futures contracts, the exchange has implemented a 17% price limit adjustment, marking a notable increase in volatility protection. The margin requirements have been revised upward with hedged positions now requiring 18% collateral and general trading positions set at 19%. This tiered approach reflects the exchange’s strategy to encourage professional hedging while maintaining proportionate safeguards for speculative trading activity.

Silver Futures: Steeper Margin Deposit Increase

Silver futures face even more stringent adjustments, with the price limit increased to 20%. The margin requirements have been set higher than gold, with hedged positions requiring 21% and general positions requiring 22%. This steeper margin structure underscores the exchange’s assessment that silver markets warrant additional protective measures to maintain orderly trading conditions.

Strategic Rationale: Risk Management and Market Stability

The Shanghai Futures Exchange emphasized that these margin and price limit modifications serve dual purposes: fortifying market stability and deploying more sophisticated risk management protocols. By raising margin thresholds, the exchange effectively reduces leverage exposure and decreases the probability of forced liquidations during volatile market periods. These adjustments align with global best practices in commodity futures regulation.

The new framework demonstrates how differentiated margin policies can be calibrated to reflect varying risk profiles across precious metals commodities. Traders and institutions will need to recalibrate their capital allocation strategies to comply with the elevated margin requirements while maintaining their trading positions.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

2 Likes