Greetings ALL. I know it has been a while since the last time I blog. A lot of question were raised, people asking where have I been, am I trading still, did I change career , and so on… well before I can answer that, my mindset and perspective has change since the last 2 years. I was begining to wander, am I doing what is right in accordance to my religion and belief ?
A while ago I have been researching retail trading compare to actual trading it self. Trading it self is not wrong, no matter who you are , whether you are a muslim or not, old or young, rich or poor. But what I want to specify in terms of my religion, RETAIL TRADING is in fact HARAM. Anything trading via a brokerage firm is in fact HARAM. Especially FOREX trading on retail.
1. Leverage – not in accordance to Shariah . This is by means of loaning at the same time buying and selling on spot. Not in accordance to sunnah. Hence this transacton is wrong and forbidden.
2. Spot in Retail Trading – Not 100% of the price are spot, it exposes to slippage and price change in a fraction of a second, even they say that they have fast lightning execution. IN my trading experience none of that are true. Again , here not in accordance to shariah.
3. SWAP – an interest rate which many broker have, though they only eliminate this by giving fix swap free account which by many does remove the defination of USURY or RIBA but does not leave the transaction of leveraging.
Though my knowledge on Islamic Economic is limited, but I can refer you a best explanation on this, see below video
I know my fellow countrymen, neighbouring friends are actively trading in the forex market. Think about it, when you use those money from a Haram Transaction. IT brings all sort of Calamity and these are the things you have to be careful of.
Not the most popular subject I pressume but please do your research.
TO simplify, No leverage = Halal and Leverage = Haram. And the only institution can do this is an islamic bank because they trade directly, not via a broker. They trade without leverage and they trade with actual spot trading base on volume.
The same applies to stock trading, trading commodities that are Halal related only. I know this is a disappointing truth but it really is. Hence that is why I stop trading. Sometimes what you see is good for you is not really good in the eye of God, but what we despise is in actual fact something good for us or best for us. Remember Allah is the best planner of all.
What do I do with these trading knowledge ? Use it in a different form of trading. Doing it in business terms. IF you think about it, even in Business, Demand supply is key things of a law of price nature. Price is derive from this equation and move in accordance to the mass.
For the other readers whom are not a muslim follower, here is a chart for you to think about prior your NFP releases. I might be wrong , since volatility will be wild on the pending doom of GREXIT. SO be aware of SL hunters out there.