Is Leverage Trading In Consonance With Islamic Teachings?
Is leverage trading permissible in Islam?
I used to do forex trading (i.e foreign exchange) which deals with currency pairs (the nature of trading is speculative as the market varies with political and economic news in the world market ). It primarily functions on massive leverage.
Friends and people of knowledge advised me to abstain from it as it involves speculation and leverage which according to them is non-permissible in Islam. I always used to close my positions in profit and also used to close my position on the same very day. Friends say that you can’t sell something which you don’t own or possess.
As of now, I am out of it. Kindly guide me in understanding the idea of its permissibility.
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