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

[zdreg]

Quote from listedguru:

Absolutely. If Sweden were to go along with this silly stamp duty then Denmark and the Netherlands just might follow. I wonder what Malta's position is on the stamp duty? What about Cypress and Luxembourg? Hopefully these countries would still say no. It's good though that the Brits don't seem to be falling for Scheauble's nonsense.

I just find it really strange that Borg would fall for this nonsense. Once they get a stamp duty on shares then it's on to bonds and derivatives, etc. This will snowball into a full blown ftt - just a wolf in sheep's clothing. This stamp duty on shares must be stopped.

-Guru

people who use words like silly, hopefully, nonsense and phrases like must be stopped are never taken seriously,

 

[listedguru]

Quote from zdreg:

people who use words like silly, hopefully, nonsense and phrases like must be stopped are never taken seriously,

Do you contribute anything of value to this thread? Everytime you post here you just belittle someone (usually me). We're all on the same side here (at least I think we are).

 

[zdreg]

Quote from listedguru:

Do you contribute anything of value to this thread? Everytime you post here you just belittle someone (usually me). We're all on the same side here (at least I think we are).

\

there is no intent to belittle you.
my statement should be taken as a reality check for you and others. your words hinder what u and most of us are trying to achieve.

 

[Explorer]

Robin Hood tax was always doomed to fail

http://www.europeanvoice.com/article/imported/robin-hood-tax-was-always-doomed-to-fail/74060.aspx

 

[Explorer]

The above link seems to link to a log-in page. Try this instead:

http://www.google.co.uk/url?sa=t&rc...p-XPDQ&usg=AFQjCNHQRVvZt7Kz1Sxe5yWBW0fNfr4dMg

 

[JohnTrader]

If we look from the other prospective, this Tax would actually help the ordinary trader to make profits in the market. It will get out High Frequency Traders from the game and cause more instability.

Taxing 0.1% each side would cost 0.2% to close a position, but on the other hand, increased volatility in the market will bring much more opportunities to profit more than 0.2%.

Or I am wrong?

 

[TraDaToR]

Quote from JohnTrader:


Or I am wrong?

Yes, you are.

Do you know a professional derivatives trader who makes more than 0.01% per trade? or a professional stock trader making more than 0.1%?

 

[zdreg]

yes u are wrong. not only liquidity from hft traders will disappear but liquidity provided by short term traders will disappear.
take the following example. u have $25,000in capital. you trade $100,000 in and $100,000 out in a day. at .002 your expenses are $200/day. after 125 days of trading your capital would be wiped out if you broke even from the market. most non hft traders are currently losers without the ftt.

 

[JohnTrader]

What is your definition of professional?
No, I do not know any derivatives traders but I do know stock traders who make more than 0.1% per trade.

I am talking about volatility of the market. If we look on 1999,2000,2001,2002 we see much more volatility which goes down since then. I assume that the High Frequency traders cause this decrease in volatility. Without volatility it is much harder to make money. It fills like the market is gradually dying because of those who chase the 0.1% profit…

 

[FightTheFuture]

Quote from JohnTrader:

If we look from the other prospective, this Tax would actually help the ordinary trader to make profits in the market. It will get out High Frequency Traders from the game and cause more instability.

Taxing 0.1% each side would cost 0.2% to close a position, but on the other hand, increased volatility in the market will bring much more opportunities to profit more than 0.2%.

Or I am wrong?

Intraday trading would cease. Sweden: Tax rate on bonds varied with maturity, ranging from only 0.03% to 0.001%. In just the first week alone, trading of bonds fell 85 percent, bond futures dropped 98 percent, bond options stopped trading entirely.


That 0.1% tax is multiples more. It is a cascading tax. Every firm in the chain would be taxed. Traders would pay the cumulative tax.
See page 8.
http://www.parliament.uk/documents/...inancialTransactionTax/FTTWrittenevidence.pdf



Even for long-term investors, the tax on a twenty year investment will cost 50% more than the original investment!

Consider a twenty year, €10,000 investment:

Annual Cost of an FTT for Equity European Active would be 252 Basis Points.

"...individual would lose nearly €15,000 investing in a more dynamically managed European equity fund over this timeframe. This is 50% more than what he/she originally invested."

see page 49
http://www.parliament.uk/documents/...inancialTransactionTax/FTTWrittenevidence.pdf