3 ms·
If you buy a stock, you must keep (hold) it for eg. 30 days (or 7, or 60, or whatever). Compute all you want, whenever you want, but instead of millisecond tim
by ajsnigrutin 3y ago
If you buy a stock, you must keep (hold) it for eg. 30 days (or 7, or 60, or whatever).
Compute all you want, whenever you want, but instead of millisecond timings, optimize stuff for at least some time.
Maybe even a tax on stock profits, which is really high and falls after some time of ownership of such stock (we have this in slovenia, but it's not really high in the first place, and time brackets go less than 5 years (25%), 5-10 years (15%), 10-15 years (10%) , 15-20 years (5%), and zero tax after that.
- edgyquant 3y agoThere already is a penalty for not holding and a tax on wash trading (selling and rebuying within 30 days.)
- Dylan16807 3y agoThen it probably wouldn't be hard to have increasing penalties for shorter durations, very especially sub-minute durations.
- patmorgan23 3y agoEven if you said you have to hold it for 3 hours that would cut against the worst of the HFTs
- darrin 3y agoAdding this sort of friction would increase spreads. Market makers are a net positive for markets (who buys/sells when no one else wants to?), and I don't see any downside to allowing them to manage risk and trade quickly. I think the way to increase fairness is to change the way orders are matched.
- yxhuvud 3y agoAnother way would be to allow higher price granularity to allow more competition on price rather than speed.