It does shave off a not negligible amount off your gross profit. But if you have access to flow information, as most facilitation desks and even prop desks have (oh no, I said it, but then that is obviously not a secret) then indeed your entries are often times pretty solid. Just because you have an issue with my way of talking does not mean I make up stories. You can of course choose to believe me or not. But I am not aware I have at a single time lied in any of my posts on this site. The choice is entirely yours.
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New Tax on All Stock Trades
- Thread starter seasideheights
- Start date
holy shit, I praise God for people in the market like you. The market is already tough enough to eke out stable profits over long periods of times but without people like you I would have long time switched careers. What an idiot. On ignore.
Easy. Let's say your transaction amount is $1000 every day. 0.22% * $1000 = $2.2.
$2.2 * 250 working days = $550 is your transaction cost.
$550/$1000 * 100% = 55%.
Basically 0.22% * 250 = 55%.
that was another post. Are you really the asshole you are pretending to be right now? I said I did not criticized you on that post. Then you turn around and pull another of your posts out of your ass and tell me I have memory loss? Seriously, what is it with some of you people on this website?
Volly, just now :
"I never criticized you on that post. I I concurred with you, in fact, that professionals run due diligence and are pretty well aware of the trade offs between the underlying cash equity and CFDs. But 80-90% of the information by some other posters that was put up on this thread is simply factually wrong."
But a few post before :
Memory loss on yesterday events uh ? Not a good sign for a top trader.
Another cookie ?
Another post uh ? You even added my quote in your insulting post. See below. You made shit up about me ever ( sorry : "The whole time" ) claiming CFDs and shares are priced the same way and you are now trying to crawl out of it with lame ass excuses, short term memory loss, and more made up Voly's crap.
In short, you are just behaving like the Voly we know.
We still like you, but you better get a shower after logging out of ET.
"Volly :
you contradict yourself: You claim the whole time that CFDs are priced in the exact same way than cash equity (which they are definitely not, else where would be no need for CFDs), then you say that the tax implications are a "bonanza for brokers who make much more money on those than on equities". Which way around would you like to have it?
So, please explain to us how that CFD DMA works for a CFD with underlying that cannot easily be shorted because of short sell restrictions, low availability of borrow inventory of the underlying, and borrow rates in general when shorting the equity. You are telling us that all those costs are nicely taken up by your broker as a service to LuisHK? Jeez, why are we even discussing this?
Fact is:
* CFD commission is different from the underlying cash equity commission for the same notional exposure
* spreads are most of the time different
= > and the above because the economics are very different between a CFD and cash equity: Different leverage rates (some extends leverage and of course charges for it), different borrow rates, different commission, different spread, different tax implications. Of course are therefore CFDs and the underlying cash not equally priced. If you claim such then you are talking utter nonsense. Not one single index CFD, for example is identically priced as the underlying index. And most equity CFDs are not priced the same as their underlying stocks, either, because most markets apply short sell restrictions among the many other issues I listed above.
Please note that I never said nor say that CFDs are inferior or superior to trading the underlying cash equity, I am saying they are not equally priced. Simple as that.
Luis quote in Voly's post :
That's what I posted first :
"I suspect most funds do the same calculation I do. They try to anticipate their holding period, commissions and interests and trade dma CFDs rather than underlying stocks if it's cheaper or other untaxed dérivatives.
UK and french transaction tax is a Bonanza for the brokers btw, who make much more money on those than on equities (if their customers trade large lots at least or have enough cash available not to buy on margin"
I'm a fan neither of stamp tax nor cfds
IB offers DMA, I don't think many big traders or firms go through otc marked up share cfds to avoid the transaction taxes.
You can compare below the financing charges on CFDs with IB and margin rates, quite close, the problem is you have to pay from the 1st usd. The more margin you use, and the shorter you hold your positions, the least it impacts. It seems a very good solution for day traders in UK
https://www.interactivebrokers.com.hk/en/index.php?f=interest&p=schedule2
https://www.interactivebrokers.com.hk/en/index.php?f=interest&p=schedule2
I don't like the CFDs commission because there is a max commission (every 100k euros or so on shares plus rebates, hence when trading big lots (moc usually ) I sometimes pay several times more in commissions with CFDs than with shares). I would trade much more european stocks with lower commissions. Also the fact one has to trade CFDs or stocks depending on the european market and attached transaction tax makes it harder to reach a higher volume tier (IB calculates separately european stock and CFDs trades), which again increases commissions.
IB actually advertises cheaper commission with CFDs than with shares, which is true on small lots.
As of how their dma works, the price is the same as the underlying :
http://ibkb.interactivebrokers.com/article/1912
As of UK stamp tax, it's 0.5%, not 0.2, which make CFDs an even better alternative to stocks for short term trades"
In short, you are just behaving like the Voly we know.
We still like you, but you better get a shower after logging out of ET.
"Volly :
you contradict yourself: You claim the whole time that CFDs are priced in the exact same way than cash equity (which they are definitely not, else where would be no need for CFDs), then you say that the tax implications are a "bonanza for brokers who make much more money on those than on equities". Which way around would you like to have it?
So, please explain to us how that CFD DMA works for a CFD with underlying that cannot easily be shorted because of short sell restrictions, low availability of borrow inventory of the underlying, and borrow rates in general when shorting the equity. You are telling us that all those costs are nicely taken up by your broker as a service to LuisHK? Jeez, why are we even discussing this?
Fact is:
* CFD commission is different from the underlying cash equity commission for the same notional exposure
* spreads are most of the time different
= > and the above because the economics are very different between a CFD and cash equity: Different leverage rates (some extends leverage and of course charges for it), different borrow rates, different commission, different spread, different tax implications. Of course are therefore CFDs and the underlying cash not equally priced. If you claim such then you are talking utter nonsense. Not one single index CFD, for example is identically priced as the underlying index. And most equity CFDs are not priced the same as their underlying stocks, either, because most markets apply short sell restrictions among the many other issues I listed above.
Please note that I never said nor say that CFDs are inferior or superior to trading the underlying cash equity, I am saying they are not equally priced. Simple as that.
Luis quote in Voly's post :
That's what I posted first :
"I suspect most funds do the same calculation I do. They try to anticipate their holding period, commissions and interests and trade dma CFDs rather than underlying stocks if it's cheaper or other untaxed dérivatives.
UK and french transaction tax is a Bonanza for the brokers btw, who make much more money on those than on equities (if their customers trade large lots at least or have enough cash available not to buy on margin"
I'm a fan neither of stamp tax nor cfds
IB offers DMA, I don't think many big traders or firms go through otc marked up share cfds to avoid the transaction taxes.
You can compare below the financing charges on CFDs with IB and margin rates, quite close, the problem is you have to pay from the 1st usd. The more margin you use, and the shorter you hold your positions, the least it impacts. It seems a very good solution for day traders in UK
https://www.interactivebrokers.com.hk/en/index.php?f=interest&p=schedule2
https://www.interactivebrokers.com.hk/en/index.php?f=interest&p=schedule2
I don't like the CFDs commission because there is a max commission (every 100k euros or so on shares plus rebates, hence when trading big lots (moc usually ) I sometimes pay several times more in commissions with CFDs than with shares). I would trade much more european stocks with lower commissions. Also the fact one has to trade CFDs or stocks depending on the european market and attached transaction tax makes it harder to reach a higher volume tier (IB calculates separately european stock and CFDs trades), which again increases commissions.
IB actually advertises cheaper commission with CFDs than with shares, which is true on small lots.
As of how their dma works, the price is the same as the underlying :
http://ibkb.interactivebrokers.com/article/1912
As of UK stamp tax, it's 0.5%, not 0.2, which make CFDs an even better alternative to stocks for short term trades"
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Lol so your post you just mentioned
"Even for french equities at 0.2% transaction tax, I suspectmost funds do the same calculation I do. They try to anticipate their holding period, commissions and interests and trade dma CFDs rather than underlying stocks if it's cheaper or other untaxed derivatives."
And your pasting another post just below are identical? You must be drunk. You conveniently omitted all the content that I in fact criticized because it was factually wrong.
I am out of here.. you can stay you are in perfect company. And hey, share your whoring experiences in Shenzhen with the kiddos , I am sure they will be impressed.
"Even for french equities at 0.2% transaction tax, I suspectmost funds do the same calculation I do. They try to anticipate their holding period, commissions and interests and trade dma CFDs rather than underlying stocks if it's cheaper or other untaxed derivatives."
And your pasting another post just below are identical? You must be drunk. You conveniently omitted all the content that I in fact criticized because it was factually wrong.
I am out of here.. you can stay you are in perfect company. And hey, share your whoring experiences in Shenzhen with the kiddos , I am sure they will be impressed.
Another post uh ? You even added my quote in your insulting post. See below. You made shit up about me ever claiming CFDs and shares are priced the same way and you are now trying to crawl out of it with lame ass excuses, short term memory loss, and more made up Voly's crap.
In short, you are just behaving like the Voly we know.
We still like you, but you better get a shower after logging out of ET.
"Volly :
you contradict yourself: You claim the whole time that CFDs are priced in the exact same way than cash equity (which they are definitely not, else where would be no need for CFDs), then you say that the tax implications are a "bonanza for brokers who make much more money on those than on equities". Which way around would you like to have it?
So, please explain to us how that CFD DMA works for a CFD with underlying that cannot easily be shorted because of short sell restrictions, low availability of borrow inventory of the underlying, and borrow rates in general when shorting the equity. You are telling us that all those costs are nicely taken up by your broker as a service to LuisHK? Jeez, why are we even discussing this?
Fact is:
* CFD commission is different from the underlying cash equity commission for the same notional exposure
* spreads are most of the time different
= > and the above because the economics are very different between a CFD and cash equity: Different leverage rates (some extends leverage and of course charges for it), different borrow rates, different commission, different spread, different tax implications. Of course are therefore CFDs and the underlying cash not equally priced. If you claim such then you are talking utter nonsense. Not one single index CFD, for example is identically priced as the underlying index. And most equity CFDs are not priced the same as their underlying stocks, either, because most markets apply short sell restrictions among the many other issues I listed above.
Please note that I never said nor say that CFDs are inferior or superior to trading the underlying cash equity, I am saying they are not equally priced. Simple as that.
Luis quote in Voly's post :
That's what I posted first :
"I suspect most funds do the same calculation I do. They try to anticipate their holding period, commissions and interests and trade dma CFDs rather than underlying stocks if it's cheaper or other untaxed dérivatives.
UK and french transaction tax is a Bonanza for the brokers btw, who make much more money on those than on equities (if their customers trade large lots at least or have enough cash available not to buy on margin"
I'm a fan neither of stamp tax nor cfds
IB offers DMA, I don't think many big traders or firms go through otc marked up share cfds to avoid the transaction taxes.
You can compare below the financing charges on CFDs with IB and margin rates, quite close, the problem is you have to pay from the 1st usd. The more margin you use, and the shorter you hold your positions, the least it impacts. It seems a very good solution for day traders in UK
https://www.interactivebrokers.com.hk/en/index.php?f=interest&p=schedule2
https://www.interactivebrokers.com.hk/en/index.php?f=interest&p=schedule2
I don't like the CFDs commission because there is a max commission (every 100k euros or so on shares plus rebates, hence when trading big lots (moc usually ) I sometimes pay several times more in commissions with CFDs than with shares). I would trade much more european stocks with lower commissions. Also the fact one has to trade CFDs or stocks depending on the european market and attached transaction tax makes it harder to reach a higher volume tier (IB calculates separately european stock and CFDs trades), which again increases commissions.
IB actually advertises cheaper commission with CFDs than with shares, which is true on small lots.
As of how their dma works, the price is the same as the underlying :
http://ibkb.interactivebrokers.com/article/1912
As of UK stamp tax, it's 0.5%, not 0.2, which make CFDs an even better alternative to stocks for short term trades"
And hey, share your whoring experiences in Shenzhen with the kiddos , I am sure they will be impressed.
My whoring experience ... in Shenzhen ?
You're sure after the over dozen posts we exchanged on the topic ?
A shrink and a shower might not do it. A priest ?
Oh right...I almost forgot. You lived near LoHu station (whore central) because you were part of an NGO and distributed pork buns to the needy. What a tool you are. Proudly walking your horny following through the ins and outs of Shenzhen and scoring prostitutes in Macao and suddenly you are ashamed to be reminded on your BS stories? Anyone interested... you can search for "Macao" on this site and can follow LuisHK's illustrious past. Highly entertaining.
Good night.
Good night.
My whoring experience ... in Shenzhen ??
A shrink and a shower might not do it. A priest maybe ?
volpunter's posts are circuitous flimflam within a pattern of backpedaling enveloped within a layer of complexity to shut people's eyes to reality. it is a simple bottom line that traders regardless of trade ranges of individual stocks do not take out 1 per cent from the market on a daily thereby turning 1M into 3.48 Million in a year's time by netting .5% per day. the internet is full of trading newsletter purporting to be able to achieve this goal. why pretend to do this in hong kong when you can save 50%+ on expenses by doing it with US stocks
Oh right...I almost forgot. You lived near LoHu station (whore central) because you were part of an NGO and distributed pork buns to the needy. What a tool you are. Proudly walking your horny following through the ins and outs of Shenzhen and scoring prostitutes in Macao and suddenly you are ashamed to be reminded on your BS stories? Anyone interested... you can search for "Macao" on this site and can follow LuisHK's illustrious past. Highly entertaining.
Good night.
A tool ? With moral issue ?
Yeah ?
A guide for the East Asia visitors out of Volpunter's misinformation, that, yes.
Again, if you are a non chinese speaking westerner do not go to SZ with dreams of debauchery, it's a city of which Voly knows only rumours from his china hating candle holding friends and the dodgiest border checkpoint but speaks like an expert.
Anyone sees a pattern with Voly ?
Macau is cool though. And both cities are next to each other.
Voly, I'd offer you gladly another cookie but so soon before bed might hurt your gracious silhouette.
Let me know what the priest says, is redemption still an option for you ?
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