Leverage options in currencies : leverage option on my foreign currency exchange account

السؤال

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I am intend to open an account with a foreign currency exchange broker (forex broker) to trade with foreign currency. Most of the brokers offer 100 leverage. 100 leverage means that every $ 1000 dollar I trade with the broker could loan me interest free short-term $ 100,000 to make my trade. The broker makes their profit from the commission and from the spread (the difference between buy and sell prices). The broker offer interest free loan to encourage trader trading more. The more trades happen, the more commission and profit the broker gets. Internally, the broker may hedge all leveraged trade (the broker make a short-term loan from other financial institute as well as buy insurance to secure the trades), but I do not exposed to that loan process at all while trading. It is like a car dealer buy a car lot from a car manufacturer to trade with (sell them), but of coarse the car manufacturer loaned the money to build the factory and insured it. So, it is permissible for the car dealer to carry on with his business, knowing that the car manufacturer loaned money with interest. My question is. Is it permissible to have leverage option on my foreigner exchange account as it is interest free loan ? Jazakum Allahu Khairan for your constant help

جواب الفتوى

أنقر هنالمشاهدة هذا المحتوى

تاريخ النشر

2006-09-04

التخصصات الرئيسية

العلوم الاقتصادية والمالية وإدارة الأعمال
الدراسات الإسلامية

عدد الصفحات

1

نوع البيانات

فتاوى

لغة النص

الإنجليزية

رقم السجل

BIM-788652

• APA
• MLA
• AMA