Islamic binary options brokers usa
Is Binary Options Halal and compatible with Islamic traditions? This has become an important question for prospective Muslim options traders as the financial industry has become available to everyone through online trading accounts.
The development of online trading in the financial industry in the last two decades has opened up new horizons for retail traders of all races and creed. The life of a Muslim is guided by Sharia Law. A Muslim is expected to abide by the Islamic principles covering all aspects of their life from social matters to economic matters that were expounded in the holy Koran.
In the area of banking and investments, Sharia law strictly forbid the lending of money with interest. When Sharia law is applied to Binary options trading, this means interest that is earned or charged for islamic binary options brokers usa overnight position is prohibited as well.
In the spot financial markets, trading is done on a 24 hours basis. By 5 pm New York time, all open market positions are then rolled over to the next 24 hours cycle. This situation puts Muslim traders on a collision course with their religious beliefs. For example, instead of having an open market position rolled over automatically making overnight interest payable, open positions in Islamic trading accounts are closed by 5 islamic binary options brokers usa New York time and then reopen immediately hence islamic binary options brokers usa any interest payable for the fresh 24 hour cycle.
To help traders in their selection of brokers that islamic binary options brokers usa Islamic trading accounts, we have compiled a list of leading binary brokers that offer Islamic trading accounts. It should be noted that the list above is by no means exhaustive but is just a guide. If someone used a Halal binary options account, but had little or no knowledge of what or how to trade, then they would be using binary options to gamble — and this would certainly be Haram.
Only the individual trader can know whether this is the case. Please note that this site — binaryoptions. It appears that it might also be dependent on the skills of the individual trader, thus in reality making it impossible for us to give advice on the matter. See the references below for further clarification. Is Binary Options Halal or Haram? Immediate execution of trades Immediate settlement of transactional cost No interest payable on trades To help traders in their selection of brokers that offer Islamic trading accounts, we have compiled a list of leading binary brokers that offer Islamic trading accounts.
Other considerations If someone used a Halal binary options account, but had little or no knowledge of what or how to trade, then they would be using binary options to gamble — and this would certainly be Haram.
If you are a Muslim or a member of the Islamic community you will probably be very interested to know whether it is acceptable to trade online with digital options.
In fact, Islamic binary options trading is becoming increasingly popular, but, you must choose a broker which offers a Halal account; this is an acceptable type of account.
Binary options brokers which offer a Haram account are not complying with Islamic law and should be avoided. An acceptable Islamic binary options trading account will allow you to trade on the markets based on the direction the price of an asset will move in. Forex trading requires you to understand the relations between currencies as well as the price direction.
Trading on either market is possible but it is essential to consider the main issues which can cause a problem with Islamic standards. These are that no Muslim should earn or charge interest and that greed and gambling are sins. There are now several binary options brokers who have developed Islamic accounts specifically designed to avoid these issues.
Interest is generally earned or charged when a transaction continues outside of the market opening hours. To avoid this the brokers are freezing a trade at the end of the business day and reopening it at the start of the next day. There is no interest earned or charged. Provided there are no commission fees or charges you are then able to trade within the Islamic guidelines.
However, greed is another islamic binary options brokers usa. The generally accepted protocol is to trade with knowledge of the market; you cannot then be said to be gambling or trading with greed. It is also imperative to limit the amount and value of the trades you undertake. If you are seen to be spending an excessive amount or attempting to hide your spending then it will be seen as islamic binary options brokers usa or gambling.
This will islamic binary options brokers usa mean that you are indulging in a forbidden activity and the penalties can be severe.
It is worth noting that binary options trading with currency pairs are seen as a grey area; as is trading on the Forex. The issue is that this type of trading is seen as gambling.
The safest way to trade within your guidelines is to avoid this type of trade. If you feel islamic binary options brokers usa must indulge it is advisable to have a recorded trading practice to prove you are acting rationally and not from a gambling addiction or greed. Subscribe To Trading Secrets. Islamic Binary Options Trading. Saudi Arabia Binary Options Although America is simply the biggest consumer economy on Earth, Saudi Arabia has been recognized as having an impressively large import and export market.
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In general a Kuwait binary options broker will of Islamic Binary Options Brokers Since the first binary options brokers enabled online trading as far back asthe binary options trading scene has grown rapidly in size and strength.
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