Benefits of playing forex
Benefits of playing forex – Forex trading has several differences between legal and illegal transactions. This is similar to Islamic banks which do not allow interest rates on deposits and loans.
The following is an explanation of the principles of Islamic banking.
What is Forex Trading Swap?
Now, before discussing swaps and the like further, keep in mind that the majority of Indonesians are Muslims, and Sharia prohibits usury and interest receipts.
Therefore, in the development of Forex, Equity or Forex trading technology, brokers provide convenience by launching Sharia-compliant trading software by eliminating interest and swaps on all transactions.
The swap itself is an extension or interest per transaction that lasts more than one day (server time) due to the difference in interest rates between currency pairs.
For example, when trading EURUSD, there are two different countries, namely the United States and Europe, which have different interest rates, so the difference in interest rates between the two countries causes a swap.
The method of calculating the swap amount can be stated as follows. If the interest rate is 1.25% USD and 0.5% EUR, the difference between the two rates is calculated as a swap. The swap amount depends on the position we take, i.e. whether we buy or sell.
When selling EURUSD, the action we take is to sell EUR and buy USD. Therefore, you have to pay EUR interest and pay USD interest at a difference of 1.25-0.5 = +0.75%. From these results, when trading, we will stay and earn 0.75% interest per lot.
On the other hand, if you want to buy EUR/USD, you have to pay USD interest and EUR interest. Swap value or interest paid for overnight transactions is 0.5-1.25 = -0.75% / lot.
Therefore, the basic principle of interest is that you pay interest when you sell and you earn interest when you buy.
Interest or barter is not allowed by Islamic law for its adherents. Therefore, eliminating swaps in all transactions protects traders from the law of usury. Benefits of playing forex
Doing business and not breaking religious rules makes you happy-Forex Journal.
How to view live swaps in MetaTrader 4
If you have trouble calculating the swap for a particular currency pair, you can check Metatrader 4 in person.
Here’s how to see it.
=> Right click on the currency pair
=> Click icon
=> Click on the currency pair
=> Click Portties
=> Look at the short swap points.
See image below for simplicity.
How do you see the exchange?
Benefit from Sharia-compliant Forex trading.
The first advantage of using a Shariah compliant Forex account is to avoid usury and interest and to comply with Sharia, which is embraced by the majority of Indonesians.
The second advantage is that if a transaction has to stay for one or more nights, the profit will be reduced or burdensome, so no interest will be paid every night on each transaction.
With the presence of this sharia account software, we can get more enthusiasm from the Indonesian people, not only Muslims but also non-Muslims. This is because the second point feature provides flexibility during day and swing trading.
Thus a brief description of the benefits of Forex trading in accordance with Sharia in Indonesia. We hope this information will add to your insight in the forex world and you will be more interested in pursuing this work. Good luck and God bless you!