Conditions for Forex Being Halal

1. Is Forex Trading is HALAL or NOT

Creating a Muslim Forex Account.

Some say forex is Halal and some is Haram. Is is Halal if it is in the same sitting which means you buy or sell the currency on the spot which in forex it means Market Order. However it comes to Haram if you use the concept of Forward/Futures which means you analyze the market price is and then you expect it to drop a lil bit to Forex Trading - Halal or Haram Fatwa Usury is of course completely prohibited in Islam, and is defined very widely. This implies that any kind of deal or contract which involves an element of interest (riba) is not permissible according to Islamic law.

What Islam Says on Online Forex Trading

After all, the line between trading and gambling is extremely thin. Moreover, other things related to trading come to discussion.

For example, the broker offers access to leveraged accounts. Which, essentially, means that the trader accepts a loan. Yet another subject to debate on a long list of pros and cons about Forex trading for Muslim traders.

You should consider whether you can afford to take the high risk of losing your money. In both cases, the outcome is a profit and a loss. Forex Trading — Halal or Haram Before discussing this topic, we should explain the two words.

In fact, we already did. On the other hand, if trading is NOT perceived as gambling, it is halal. For that, at least to following should be considered: A swap is an interest rate differential between the two currencies that make a currency pair. When this differential is positive and the position is kept to the next day, a small amount gets deposited in your trading account. To avoid swaps, either trade intraday close all your trades until the end of the trading day or use a swap free account.

Most Forex brokers offer now swap free accounts for Muslim traders. Use an ethical mindset. Forex is Halal if you are not gambling and have your end goals clearly distinguished. There is a thin line between trading and gambling, we all must admit it. But the good news is that you can avoid being a gambler. Since this subject is debatable please feel free to comment your thoughts below in the comments section.

Amandeep Sonewane 18 September Amandeep Sonewane 19 September Will Ripple Introduce a New Product? Investors and small businesses can in such cases, save their businesses and stop losing their hard earned money. As in the case of Venezuela, there are things people and small business can do, which are fully compatible with Islamic finance, to help rebuild their economy, reduce poverty and to reward foreign investors in the end.

It is perfectly moral to profit out of Venezuela but only after your investment helps the people of Venezuela get out of poverty. Muslim traders are allowed to use forex in ways not related to interest rates, to make a profit, in order to offset a loss elsewhere. They can trade market volatility on a currency pair, they can trade commodities.

But it has to be on the spot market. In other cases, Muslim traders and investors in an oil exporting country, can offset the loss of national income, when crude oil prices fall and keep in falling, by going long USDCAD, or by making direct trades on crude oil that are compatible with Islamic law.

Immoral finance practices are blamed not only by Islamic scholars, but also by other groups, of non Muslim people, who simply see the injustice. Sharia law goes further, by arguing that you should also have financial goals which should end up benefiting society. And this is a requirement in other religions also, though in a less rigorous way. The forex market today is neither evil nor good, it can be both, and profits made from it can have different kinds of impacts on the world.

Forex affects so many things and helps facilitate and smooth out trading of physical goods, around the world. The Carry trade strategy is the main strategy that is not allowed in Islamic forex trading, and even that comes with massive risks, risks that even investment banks cannot evaluate.

Critics will argue that this strategy should be allowed, even for Muslims, in cases where their own country pays interest rates to some foreign lender, or that the national currency may fall as a result of that debt.

Sharia law is against this strategy and against using forex brokers that work with interest rates. Nonetheless, even Muslim traders in heavily indebted countries, can still make Sharia-compatible forex trades that will offset the effects of such national debts, at a personal level. Muslim forex traders are allowed to trade the volatility of the spot forex market, and from that alone, one can offset the negative effects the global markets have on them.

In commodity markets such as gold, crude oil or grains, when priced in USD, the impact of the USD is directly seen in the commodity prices. So if one trades for example gold, even physical gold, they are already, also, a forex trader who trades the USD.

So the forex market can be used to offset risks in these commodities and to stabilize a business which depends on the price of these commodities. You can find your way to morality and justified forex trading from these trades, and then learn more about Sharia law and how it specifically may or may not permit your new forex trading strategy.

In most cases it will permit it.

CoinAnalyst

We would seem to be on solid ground here, as when a trade is made with a Forex broker, it takes effect immediately.

Closed On:

Under its tenets, money is strictly something with which we can exchange for goods and services. The interest rate issue has been solved, there are already brokers, even non Islamic brokers which do not pay or charge overnight interest rate on trades held, this is offset by larger margin requirements or possibly higher commission charges.

Copyright © 2015 radiohitzfm.tk

Powered By http://radiohitzfm.tk/