Why the initial move in opposite direction after news release?

farmerjohn1324 said:
Btw, I just made another $1650. Bought 3739.50, sold 3745. 6 contracts ESZ22.
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I assume that's MESZ2, and no wonder you had such a large swing earlier. Being on the wrong side of 6 minis during news volatility could do that pretty quickly lol.

/edit: ESZ2
 
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Aisone said:
My understanding is, let's say you have $50k in your account, you can trade with 4x that, or $200k intraday. If your position surpasses this 4x value of your account due to losses, the position could be closed. That's the way I understand it, so if that is incorrect and your maintenance margin is referring to something totally different, I definitely need to understand it better myself.
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%%
I DONT know of any broker that would let $50 k account turn into a 200K loss[say unrealized loss intraday]\ but i would NOT risk that/ nor even try to risk that, so i could be wrong.:caution::caution:
By the way, for sure/ some unrealized $200k losses could turn profit by eod close\ but many could go further than $200k loss \assume a broker would allow that\ which may NOT be true.
YOU know you are good customer if your broker ends you a FDX letter margin call :D:D
 
farmerjohn1324 said:
Today, immediately after NFP release, S&P went down for about 2 minutes before going back up and it's been up since.

Same thing happened the other day following the Fed speech. Initially gains, followed by massive loss.
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First mouse set up for a liquidity grab.

Much like a weekly chart, the initial move in the week is opposite the bulk of a candle's body and trend of the week.

Depends where the previous HTF swings are placed and whether those levels are interesting to bigger players with deeper pockets.
 
Aisone said:
My understanding is, let's say you have $50k in your account, you can trade with 4x that, or $200k intraday. If your position surpasses this 4x value of your account due to losses, the position could be closed. That's the way I understand it, so if that is incorrect and your maintenance margin is referring to something totally different, I definitely need to understand it better myself.
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I don't know what you are talking about, but Futures margin don't work like that.
 
The market jukes you like a boxer to make sure no muppets get onboard the move before it gets going. I'm speaking from experience. :D
 
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