1/4% Tax on all stock trades pushed in NY Times today

Quote from bigskyguy:

I think the case has been made on the hundreds of pages prior to this one and how it would put everybody out of business, if you can't see that, nothing can be done for you..
More...

Ditto. My profit margin for last year is around 1/5 of the proposed dérivatives rate and I am a just a slow manual liquidity provider, the kind that almost never cancel orders and exchanges love.

In fact, the good HFT ,liquidity providers, who makes fraction of an increment per trade, would be immediately out of business but I am not so sure for predatory ones who move markets agressively for a few incréments...

Why am I even responding to this? Piezoe, create your own thread, this one is to follow actual progress of FTTs around the world.
 
Quote from justrading:

You completely missed the point about computers, go back and read my post slowly.

To refresh your memory, from your earlier post "I want it to stabilize equity markets, to drive the subpenny boys off the exchanges, i.e., those clever folks responsible for a 600 point loss in 5 minutes".

Don't you think any large hedge fund with algo driven computerised trading can trigger such a crash? Not all algo trading is HFT.

http://en.wikipedia.org/wiki/Algorithmic_trading
More...

My answer to the question is, yes. (subject to exchange circuit breakers , etc.)
 
Quote from piezoe:

I will not accept arguments, in the present case, based on prediction of future politics, nor ad hominem arguments, of course.

I am an advocate of the tax implemented in the way Tobin intended it.

As a means of raising money, it is a terrible idea. As a means of cleaning up the market, it's brilliant. It must be set very low and at just the precise level to do great good and virtually no harm.

I will change my mind instantly if anyone can present a logical counter argument without rejecting the assumption that HFT poses a greater risk to the market than benefit.
_______________________
"Common wisdom is usually wrong." -- Gore Vidal
More...

Do you know how much FFT cost you? Every trade will cost you anywhere from 0.5% to 1.0% on FFT. For your next 100 trades, you will lose 60% of your trading capital before making any profit. Just to breakeven, you have to make at least 60% profit every year. For short term investors, they are hurting as well. It will cost them 20% of investment capital every year. At this rate, most of them will lose all their investing money in couple years just on FFT alone. When this taxed was introduced in Sweden, their markets volume dropped 90%. Most Swedish traders and investors knew they would go out of business in several years if they didn't offshore their investments.
 
Quote from hoffmanw:

Do you know how much FFT cost you? Every trade will cost you anywhere from 0.5% to 1.0% on FFT. For your next 100 trades, you will lose 60% of your trading capital before making any profit. Just to breakeven, you have to make at least 60% profit every year. For short term investors, they are hurting as well. It will cost them 20% of investment capital every year. At this rate, most of them will lose all their investing money in couple years just on FFT alone. When this taxed was introduced in Sweden, their markets volume dropped 90%. Most Swedish traders and investors knew they would go out of business in several years if they didn't offshore their investments.
More...

0.5 to 1 % ?
 
You must log in or register to reply here.
Back
Top