Silver futures price volatility influenced by trading volume and open interest.
The study looked at what affects the volatility of silver futures prices on the Thailand Futures Exchange. They used a specific model to analyze data from June 2011 to December 2012. The results showed that the time until a contract expires doesn't impact volatility much. However, trading volume tends to lower volatility, while open interest tends to increase it. This suggests that margin requirements for silver futures shouldn't change much as contracts near expiration. These findings can help people who manage risk with silver futures and predict their price changes.