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It's official: Merkel seeks German F.T.T. at NYSE
- Thread starter tortoise
- Start date
Quote from failed_trad3r:
a transaction tax is basically a doubling or tripling of commission. for most, and a milleniumnning of HFT commissions. If you go back to 1980 you had the same situation, and the market did just fine. fear is overrated. sure in 1980 you didnt had daytraders, they will die.
Transaction tax is totally not the same as doubling or tripling of commission. This is more equivalent to increasing buy/sell spread, where loss on transaction is percent of position amount.
The core of western economy success was free flow of capital. Capital gains are already taxed and for active traders it is taxed as income. FFT is double tax and it taxes FLOW of capital. FFT restricts free economy and changes capital into government budget. Most importantly where there is tax there is an exemption because it is politicians rackett. Guess what is exempted already: trading government bonds. What they want is to suck all the capital from free markets to fund government waste. Then they will exempt all bond dealer banks (the big ones) because they warehouse and distribute government bonds. All the "good things" FFT will be spent for is just cover up and all the propaganda surrounding it seems to work looking at some of the opinions expressed. Always follow the money !
Quote from gkishot:
Transaction tax is totally not the same as doubling or tripling of commission. This is more equivalent to increasing buy/sell spread, where loss on transaction is percent of position amount.
Yes, that's correct when it comes to the real cost of the tax is not just a simple doubling or tripling of commission. <b>It's significantly larger with proposed transaction tax rates from 0.005% to 0.5%.</b> Introducing such a tax that differs from country to country will help the Brits out more than those idiotic religious fanatics and socialists Merkel's trying to appease.
how about nasdaq stocks purchased via ARCA?
how about nasdaq stocks purchased via NSDQ where the counterpary is ARCA?
how about nasdaq stocks purchased via NSDQ where the counterpary is ARCA?
Would you people stop talking about the transaction tax here in the USA .....its NOT going to happen !!
the U.S govt (especially the GOP led House in Congress) will kill it instantaneously.
Do you dumbasses really think Merkel has the power to do that?...LOL
IDIOTS !!
the U.S govt (especially the GOP led House in Congress) will kill it instantaneously.
Do you dumbasses really think Merkel has the power to do that?...LOL
IDIOTS !!
Quote from southbeach4me:
Would you people stop talking about the transaction tax here in the USA .....its NOT going to happen !!
the U.S govt (especially the GOP led House in Congress) will kill it instantaneously.
Do you dumbasses really think Merkel has the power to do that?...LOL
IDIOTS !!
Agreed!
Quote from gkishot:
Transaction tax is totally not the same as doubling or tripling of commission. This is more equivalent to increasing buy/sell spread, where loss on transaction is percent of position amount.
maybe not. if fills today are worser due to HFT frontrunning, bid/ask spread might widen but in reality go smaller. Yes you will literally see it widen, but these spreads can effectual be smaller without HFT frontrunning. this is my hypothesis. HFT disappear, and investor won't notice much difference at all because they stop losing money to frontrunning order flow HFT. That said, daytraders will die.
Quote from failed_trad3r:
maybe not. if fills today are worser due to HFT frontrunning, bid/ask spread might widen but in reality go smaller. Yes you will literally see it widen, but these spreads can effectual be smaller without HFT frontrunning. this is my hypothesis. HFT disappear, and investor won't notice much difference at all because they stop losing money to frontrunning order flow HFT. That said, daytraders will die.
Daytraders provide liquidity and make the markets efficient. You don't want to be in the market with no liquidity fearing that you won't be able to sell. If you are investor you should not concern yourself with daytraders anyway. Just because you failed as a trader it does not mean all daytraders must vanish.
If you so for the transaction tax then all the professionals including market makers should be taxed as well no exception. Can you do that?
Quote from failed_trad3r:
maybe not. if fills today are worser due to HFT frontrunning, bid/ask spread might widen but in reality go smaller. Yes you will literally see it widen, but these spreads can effectual be smaller without HFT frontrunning. this is my hypothesis. HFT disappear, and investor won't notice much difference at all because they stop losing money to frontrunning order flow HFT. That said, daytraders will die.
A white paper I read for my Senior Internship showed conclusively that decimalization reduced transactions costs significantly by decreasing spreads. <b>You cannot expect by adding taxes as inefficient as FTT that that will decrease volatility, or provide a more "efficient" market because if you remove liquidity you're guaranteed a horrible outcome, including millions of lost jobs, debt, and depression, not just stagnation.</b>
All of that is guaranteed by economics as well as all the research that's been done on the topic. Your position is moronic and naieve.