How likely is it now that a financial transaction tax will pass?

deaddog said:
HFT is recent and I doubt that there are too many successful retail HFT traders. I agree a transaction tax would cut into their profits when you are trading for pennies or less.
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Who are you agreeing with? Yourself?
you have found an easy audience.
I have posted previously with numbers that HFT traders and active retail traders would go broke with a FTT. It is time to learn your trade. Sit down with a piece of paper and do the numbers yourself.
 
zdreg said:
Who are you agreeing with? Yourself?
you have found an easy audience.
I have posted previously with numbers that HFT traders and active retail traders would go broke with a FTT. It is time to learn your trade. Sit down with a piece of paper and do the numbers yourself.
More...
I haven't seen any numbers in this thread.

Really I don't care. I don't day trade and a small tax is not going to make a significant difference to my bottom line. To my knowledge there isn't a tax yet so there isn't anything I can do. If and when a tax appears I'll adjust. I probably won't go broke.
 
Overnight said:
Snoopy, yer barking up a wrong tree. There are many people here who KNOW FOR A FACT, SOMEHOW, that FTT will destroy all stock and options trading everywhere across all markets. Apparently the only thing that will ever be profitable will be bonds. You sure you want to side with me against the super-smart folks here that KNOW exactly what the tax will be, before there is any bill submitted to congress?

From what I have gathered from some posts, there will simply be no profit to be had, because this tax will be on notional value. So people who are trading millions of dollars worth of stock will be taxed thousands of dollars when they lose .0001 per share. Oh, and it will be retroactive to all trades going back Lord knows how long, according to the conspiracy theorists, so all the profits on the books from years back will have to be recalculated. Dividends will have to be withdrawn after they were paid out, or some shit.

Wall street is finished, apparently. I'ma open a hot dog pushcart. All-cash business, and no overlords aside from the peddler license tax.
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Are you on drugs?

100k account trading 400k of stock a day easily done with 4 to 1 margin. .001(1/10 of one per cent) is the lowest number suggested so far. not .0001 you wrote above. 250 days x$400 = 100k. That means to break even you have to make a 25% return by taking 100k out of the market. How many people are capable of doing that. Plus you want to have a profit of 100k. That means you have to have a 50% return.
Are you capable of achieving that goal?
Wall Street will continue to exist but active day traders and HFT traders will be out of business.
 
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deaddog said:
I haven't seen any numbers in this thread.

Really I don't care. I don't day trade and a small tax is not going to make a significant difference to my bottom line. To my knowledge there isn't a tax yet so there isn't anything I can do. If and when a tax appears I'll adjust. I probably won't go broke.
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Probably you are right but why post on a subject that you know little about and have no interest in finding out about.
 
Maybe some don't realize, but it would also be the end of zero commission trading as this is achieved by selling order flow to HFT firms. So instead of society progressing to low cost accessible markets for everyone we will regress back to paying $20 plus per trade for modest positions when you account for base commissions plus the additional percentage based FT tax.

At the Harris proposed 0.2% FTT, an even 100 lot trade of SPY would incur an additional $75 cost per side of the trade (.002x379x100).
 
Overnight said:
Snoopy, yer barking up a wrong tree. There are many people here who KNOW FOR A FACT, SOMEHOW, that FTT will destroy all stock and options trading everywhere across all markets. Apparently the only thing that will ever be profitable will be bonds. You sure you want to side with me against the super-smart folks here that KNOW exactly what the tax will be, before there is any bill submitted to congress?

From what I have gathered from some posts, there will simply be no profit to be had, because this tax will be on notional value. So people who are trading millions of dollars worth of stock will be taxed thousands of dollars when they lose .0001 per share. Oh, and it will be retroactive to all trades going back Lord knows how long, according to the conspiracy theorists, so all the profits on the books from years back will have to be recalculated. Dividends will have to be withdrawn after they were paid out, or some shit.

Wall street is finished, apparently. I'ma open a hot dog pushcart. All-cash business, and no overlords aside from the peddler license tax.
More...
Early in the year you are the lead contender for the post with the greatest separation from reality or maybe end the contest right now and crown you as the clear winner.
 
zdreg said:
Are you on drugs?

100k account trading 400k of stock a day easily done with 4 to 1 margin. .001(1/10 of one per cent) is the lowest number suggested so far. not .0001 you wrote above. 250 days x$400 = 100k. That means to break even you have to make a 25% return by taking 100k out of the market. How many people are capable of doing that. Plus you want to have a profit of 100k. That means you have to have a 50% return.
Are you capable of achieving that goal?
Wall Street will continue to exist but active day traders and HFT traders will be out of business.
More...

Bottom line is that it's like a huge commission on both sides of all trades: wins, scratch and stops -- rendering daytrading impossible.

IF FTT PASSES, WE ARE TRULY FUCKED

https://www.cnbc.com/2020/02/19/financial-transaction-tax-could-hit-average-americans.html

https://www.nasdaq./articles/what-is-a-financial-transaction-tax-how-much-could-it-cost-you-2020-09-01

It would be like charging poker players $50/hand just to play. Fuuuuucck
 
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zdreg said:
Early in the year you are the lead contender for the post with the greatest separation from reality or maybe end the contest right now and crown you as the clear winner.
More...


Yay! I might win something, instead of succumbing to the idea that you can always come out ahead by buying the cash close and selling the cash open!
 
Vanguard Group, an asset manager, said “everyday savers” would need to work around 2½ years longer before retiring if a 0.1% transaction tax were imposed.

This is what every non-trader tax payer needs to hear and it would be resisted strongly!
 
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