Forex trading is it halal

Forex trading is it halal

21/02/ · Is Forex trading Halal? The basic idea of Forex trading is that one can make a profit by buying and selling different currencies at different periods in time. This act in itself is halal, but is subject to certain conditions which must be met: The Forex contract and exchange must be made in the same sitting In conclusion, forex trading is both halal and haram, depending on the situation. As a Muslim forex trader, to avoid the risk of being haram, stick to swap free accounts and have an exit strategy in place for every trade you enter into. Avoid overstaying your stop losses and never trade on emotion, as this is blogger.com: Kyle Townsend 23/12/ · It appears that the verdict is that if you trade forex from a specialised Islamic account, it is Halal or acceptable, but any other method would be Haram or forbidden. Brokers have created interest-free accounts for this purpose and have structured their pricing in such a way as to avoid any semblance of usurious attachments

Is Forex Trading Haram or Halal in Islam? – ForexBroker

Forex trading is extremely popular around the world, with traders of all faiths. The issue with this is the ethics behind forex trading, especially for the Muslim faith. Is forex trading haram? Forex trading is both halal and haram. If you trade with an Islamic swap free trading account and with a proper investment strategy, you are not incurring interest nor gambling, which are both considered haram. This is still a very grey area and the ethics involved with forex trading are subject to the trader.

Since there is speculation involved with forex trading, it can be very easy to get carried away and stay in losing trades too long. For many traders who are also Muslim, this could lead to gambling or even incurring interest payments, making forex trading haram. The whole argument of whether forex trading is halal or haram comes down to the argument, is forex trading gambling? Gambling is considered haram and carries a huge black mark against forex traders who actively participate in gambling.

This also leads onto a larger question of whether or not leverage in forex is halal, or haram. The grey area of whether forex trading is haram, forex trading is it halal, comes with the area of gambling. Forex trading, done properly, is not gambling. Every trade has the possibility of going bad at some point. This is where having a good exit plan comes into place — your stop loss. Staying in a bad trade, which is forex trading is it halal result of an ill timed stop loss, would be considered gambling and could make forex trading haram.

The biggest no-no when it comes to forex trading as a Muslim is to trade on emotion. Traders of the Muslim faith need to understand that this is the biggest sin of all. Trading on emotion will lead to bad trading habits, which can result in you making buying or selling decisions based on your feelings. This is the exact same thing as gambling, so keep emotions out of forex trading if do want it to be halal, forex trading is it halal. Incurring any type of interest, forex trading is it halal, whether positive or negative, is considered haram.

With a standard forex trading account, you will be charged interest on the amount and value of your positions. If you stick to Islamic swap free accounts, you will not need to worry about this.

Using an Islamic or swap free forex trading account will ensure your forex trading is halal, forex trading is it halal. This ensures that you are not incurring interest or any type of fee for holding your trading positions open overnight, since swaps accrue from the time a position is opened until it is closed.

I would recommend consulting this list of swap free trading accounts. For a professional investor, forex trading on a swap free account would be classed as halal. For a novice, it maybe classed as haram.

So as a Muslim, you need to ensure that you are trading forex on the right type of account, and sticking to your investment strategy at all times…. In conclusion, forex trading is both halal and haram, depending on the situation.

As a Muslim forex trader, to avoid the risk of being haram, stick to swap free accounts and have an exit strategy in place for every trade you enter into. Avoid overstaying your stop losses and never trade on emotion, as this is gambling.

Forex trading is it halal not speculate too high with leverage either, though a more experienced trader would know how to do this correctly. What is your opinion on whether or not Forex Trading is halal or haram for Muslim forex traders? Please feel free to let us know in the comments below….

Kyle Townsend is the founder of Forex Broker Report, an experienced forex trader and an advocate for funding options for retail forex traders. As the forex prop firm industry has grown, so has the amount of prop firms offering funding for traders. With forex brokers reducing leverage and the industry getting more regulated, trading your Skip to content Forex trading is extremely popular around the world, with traders of all forex trading is it halal. Article Contents Forex Trading Is Halal, Or Haram?

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Is Forex Trading Halal or Haram in Islam? - Islamkidunia

21/02/ · Is Forex trading Halal? The basic idea of Forex trading is that one can make a profit by buying and selling different currencies at different periods in time. This act in itself is halal, but is subject to certain conditions which must be met: The Forex contract and exchange must be made in the same sitting 23/12/ · It appears that the verdict is that if you trade forex from a specialised Islamic account, it is Halal or acceptable, but any other method would be Haram or forbidden. Brokers have created interest-free accounts for this purpose and have structured their pricing in such a way as to avoid any semblance of usurious attachments 20/08/ · The trading market is halal in Islamic countries because it is a form of business in which the investor can expect to get money later by risking his assets. There is no credit in trading, so investing here adheres to Islamic laws. Halal and haram are what Muslims think about all the time to decide if they want to trade or not