isnt there a stamp tax on uk stocks? meaning every time you buy a stock they add a fee of say 1%. makes it very difficult to daytade when your looking to make pennies. btw i have no idea what the transaction tax is in the uk. but there is no transaction tax inthe usa. only a sec tax that is minimal
How do you get around the tranasction tax in UK stocks? I thought one existed but I could be wrong. If so I am sorry for asking a stupid question
I don't know how you came to that conclusion. First of all, if you fall below maintenance margin, you'll automatically have you position liquidated. For instance, day trade margins aside, let's say you have $7000 in your account. You bought 1 ES contract using $6188 or your funds to met the performance bond for 1 contract. if your account falls below $4950, you would face a margin call. but since most brokerages don't bother with margin calls, they would simply close out your position the moment your account value fell below that level leaving you with an amount very close to $4950 less commission and slippage of a few ticks if any depending on market conditions. Second of all, trade with stops. Even bracketed OCO stops and you'll be able to define your loss within a few ticks. So you won't have to worry about losing untold sums between breakeven and falling below maintenance margin. I have never seen anyone in my trading career get blown out and owe money from a futures trade. Especially with liquid contracts.
Yeah I like not being able to buy and sell as I wish. That's REAL true "free-market" thinking.......The American way. As fucked up as possible. Look at what we've done here with the friggin economy...guessing and over-reacting..... and we can still only make 3 round trips in 5 days.
its still free market you can make 1000 trades if you like, you just cant use leverage in this circumstance.
its still free market you can make 1000 trades if you like, you just cant use leverage in this circumstance.
I like the rule. I think the anger and storng opinions expressed are from those without 25K and do not want to get a job.
Why? So far people here that say the rule is good have yet to give a solid logical reason why it's good. Sorry buddy, I have a job, and I also have a life with other things that I need to pay for this year (house remodeling, wedding) which precludes me putting 25K in my account.
At the same time, no one has given a solid logical reason why it's bad. Why? It's not something that lends itself to "solid logical reasoning" either way. It's a rule defined by political ideology. Even it's threshold is arbitrary. But it accomplishes it's goal. To provide the illusion of the government safeguarding the markets and its participants. Mostly, that's all it need do. Most who complain about it just haven't fully explored all the instruments available for day trading which have no such barriers of entry. The majority of them having significant advantages to stocks.
DMAN:Most who complain about it just haven't fully explored all the instruments available for day trading which have no such barriers of entry. The majority of them having significant advantages to stocks. Name some other than the exclusion rule. Thanks