Hello, In the past few days, the idea of the tobin tax has reappeared. This tax will be a 0,005% tax on every financial transaction on any kind of asset. What do you think of the impact of this tax on the profitability of scalping strategies in futures markets (stock index, commodities, interest rates...etc) ?
It's on currencies only isn't it? If so, I hate it, really hate it. If we have hyperinflation currencies might be a good place for traders to run to, the tax is just going to kill of the last hope for the people trying to escape the jobless recovery scenario by trading... everywhere you turn there is some bastard with a tax...
http://www.elitetrader.com/vb/showthread.php?s=&threadid=150546 Goto the thread above we have been discussing the tax for almost a year now. It did not just reappear if you read the last bunch of pages of our thread. There was a meeting in Paris for alternative financiaing for development with some European and 3rd world countries. The are looking to push a currency levy or solidarity fee as they call it as well as a fincnaial transaction tax so they can help the poor countries. This was attended by 50 something countries, the United States was not one of them, we are not a member or an observer of this group. So thats why its been in the news the past few days the meeting was this week. If your in Europe you might have to worry a bit.