| RESULTS FOR DAY | |
|---|---|
| ZS Contracts: | 8 |
| Net $P/L: | 209 |
| Wins: | 2 |
| Losses: | 2 |
| Win%: | 50 |
| Avg$Win: | 227 |
| Avg$Loss: | -123 |
This news of a trader tax from Europe is concerning. I don't know if it will really happen but if it does, I can't imagine it not affecting USA traders because there will be less volume and liquidity in the markets. "A trade of a derivative would face a tax of one-hundredth of 1 percent. But that tax would be applied to the notional value, which can be very large relative to the cost of the derivative." This means a trade of 1 contract of ES would have a tax of $7.50 (per side or round-trip I'm not sure?). NQ would be $5.40, ZS $7.30! It's hard enough to cover commissions. This tax would change the game entirely.
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It would definitely be the end of my trading! As you say, it's hard enough to overcome commissions on these time frames.
ReplyDeleteI have to look into this tax, my wife and I have seriously considered living in Europe; this has me very concerned.
ReplyDeleteI keep calm by reading articles that hint at the difficulties implementing this...
ReplyDeletehttp://www.ft.com/cms/s/0/8213c20a-76ca-11e2-b925-00144feabdc0.html#axzz2LxahtdT1
... and then have panic attacks when I think about the impact on my minuscule edge.
I trust the difficulties are many (although FT.com won't send me an email to confirm my account so I can't read that link)!
ReplyDelete