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

Discussion in 'Taxes and Accounting' started by seasideheights, Jan 13, 2009.

  1. TraDaToR

    TraDaToR

    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.
     
    #11001     Jun 13, 2013
  2. TraDaToR

    TraDaToR

  3. piezoe

    piezoe

    My answer to the question is, yes. (subject to exchange circuit breakers , etc.)
     
    #11003     Jun 13, 2013
  4. TraDaToR

    TraDaToR

  5. hoffmanw

    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.
     
    #11007     Jun 14, 2013
  6. sheda

    sheda

  7. 0.5 to 1 % ?
     
    #11009     Jun 14, 2013
  8. southall

    southall

    I presume he is referring to the cascading effect.
     
    #11010     Jun 14, 2013