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Question On Sharia Compliance Of CFD Trading With A Prop Firm
As-salamu alaykum wa rahmatullahi wa barakatuh,
I seek your guidance regarding the Shari’ah compliance (Halal status) of trading CFDs (Contract for Difference) on Gold (XAU/USD) and Forex through a Proprietary Trading Firm (Prop Firm).
We are operating under a strictly defined and transparent set of rules to ensure the activity is compliant. The rules are clear and public; there are no hidden charges, hidden interest, or concealed terms.
Trading Compliance Conditions:Elimination of Riba (Interest): The account used is explicitly Swap-Free or Islamic, guaranteeing that no Riba (interest) is paid or charged for holding positions overnight.
Gambling Prohibition: Trading is purely a professional activity based on proper analysis and risk management (Stop-Loss/Take-Profit). Over-trading is strictly prohibited to avoid the element of Qumar (gambling).
Low Leverage: The maximum leverage is limited to a low ratio of 1:20.
Given this precise structure, where the element of Riba is removed, the activity is based on analysis and defined rules, and leverage is kept low, kindly answer clear is CFD trading considered Halal according to Islamic principles?
Jazakum Allahu Khayran.Gemini can make mistake
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Question On Sharia Compliance Of CFD Trading With A Prop Firm
updated 6 days, 12 hours ago
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Assalam Alaikum sir, I would like to know it more clearly, I have same confusion for propfirm trading, so basically they provide us virtual funds to trade and they copy our trades and do trading from our analysis and give use profits for that, thats basic principle, and yeah its not free we need to pay fees for a challenge and then prove ourself as a good trader by completing their 15% profit target under some conditions, only after that they provide us funds, and they dont always put their money in real market always if we did so, and we cant know when they will follow our trades or not, so thats basic defination of propfirm trading, and one thing, the way they trade is future trading and cfd trading, but we dont do so, because we are not putting even a single dollar in real market, we are just helping them to decide for trades,
so after all this, my question is that, sir can you give me fatwa that its permitted in Islam and I can easily do this? and you will be resposible for my all sins in this type of trading if its haram in actual, thanks sir, I would love to know your answer plz.
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