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smallmancontrovtoday at 3:45 PM1 replyview on HN

This is completely ignorant of market microstructure. For big swaths of the market, most parties interacting with the market do so by trading with a market maker who ensures that everyone's trades clear immediately in exchange for a fee that covers the risk of getting caught offsides. If you're big enough, it makes sense to take that risk in house, but the risk and its very real financial cost remains. In both cases, trades that increase the risk increase the fee. So no, corruption is a tax and everyone pays the tax even though the mechanics have fallen through the rather large cracks in your understanding.

If you think this tax is de minimis, great, glad to hear it, let's put a government tax of similar magnitude in there and resume the peanut butter rations to starving african kids that DOGE cut.


Replies

jstanleytoday at 5:53 PM

Sometimes trading with people who have better information than you is part of the risk you take on when you run a market-making strategy.