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The ES is trading at around 720 today and its cash value is 50 times that, or $36000 per contract. So if you do one round turn on a single contract, you have $72000 in transactions. The transaction tax is 0.25% of $72000 which is $180, or a little more than 3.5 pts. Add commissions and you need to profit 4 pts on average on every trade you make. This is not a tax on profit, its a transaction tax that you pay regardless of the outcome of your trade. No one day trades with that kind of profit factor that I know, or have heard of. That means daytrading the ES ends, software vendors go out of business, and exchange revenues drop precipitously. The only private day traders will be from foreign countries.
This is being promoted as a means to pay for TARP. Listen to him closely, he says straight out that he wants to get rid of those unproductive day traders that work with "little tiny margins and churn". And calls us "Wall Street".
If you have not already done it, please make your voice heard.
Today's trade was sort of a Casual Friday kinda' trade.
No muss, no fuss, and no drama.
Futures & Options Broker