Buy high, sell short? Forex guys have a lot more nerve than I do.
> I'll just have to stick w/writing OOM EUR calls on 200-300 pip rallies, which strategy has worked very consistently since 9 March
I guess Kofi's little tax will take a bite out of that...
> Good trading to you!
Back at you!
This sort of scheme is better known as a variant of the ''Tobin tax'', after the chap who thought it up. Typical academic, if you get my drift here, and I'm ashamed to have attended the college he has infested for some decades.
The GOOD news is that, by trading either futures or options on futures instead of spot and forward forex, even IF this idiotic tax would be implemented by the UNazis or assorted gov'ts, any American citizen is immune.
Why? Because we trade futures and futures options on currencies right here in the US, in Chicago -- no 'foreign' component to it, hence Kofi can take his tax and stick it in Idi Amin's cannibal freezer.
Now, there is of course the chance that the feckless and incompetent idiots in the Regress will pass a law that changes this game, esp. toward something like a Tobin tax, and generally and naturally in an unfavourable manner for the trader.
That's all right (at least for now) -- got it covered. Pls pardon me if I don't put the details right out here in public. The tactic(s) the trader will use if such statute is made into ''law'' are and will remain thoroughly lawful; it's just, as ever, that the politicos and their moochers will hate to have to deal with it (and won't even know how, into the bargain).
Think ''Prohibition'', on a much grander scale, and w/o the (cough) ''contributions'' to that ''noble'' cause from such as Marranzano, Luciano, and Capone. The trader will not have any recourse to methods such as employed by those criminals; he will simply go about his business in a slightly different fashion.
BTW, one encouraging thought for you. Anyone can treat ccy trading as gambling, but this is idiocy. The 'house edge', in terms both of the bid-ask spread and the information risk (info risk = ''What did Greenbean say to the Pres in private?'' We don't know, but other traders do, and we are therefore at risk because of insufficient timely info) is far greater in forex and ccy futures trading than at a casino.
Therefore, it behooves the person who WOULD trade forex or ccy futures to use various strategies that are NOT information-dependent. Sadly, most of this group of traders do not do so, believing (sometimes rightly, but mostly wrongly) that they can trade the ''swings'' successfully using assorted methods.
More power to them. I don't believe that, and do not trade swings, EVER. We'll see who wins out in the long run...and yr hmbl srvnt WILL be still in the mkts in the long run.