Definition of the forex market
Market Forex Trading Forex
Forex FOREX is the abbreviation for the phrase "exchange market in foreign currency"
FORegien EXchange market
Old currency was fixed is constrained not only moving, but in 1973 was edited currencies "became a floating" According to the conditions and economics, and politics created the Forex market to benefit the people of the change in the spread.
The meaning is obvious to this market is the trade immediately in the foreign exchange outside the stock market through a brokerage firm online progress of this company, services and mediation in the financial facilities from banks to customers, services are also provided economic analysis and provides trading software for clients to enter the spot market currencies over the Web or via mobile phone or through the trading software is installed on your computer, and after you open your new account with a brokerage firm and is funded with money you can merchant the implementation of contracts and commercial transactions, purchase or sale of exchange between currencies, as they deem you as an investor to expect the force to the economy of the State are allowed to buy its currency, the sale of another currency with you, or expect to double the nation's economy Vtabie currency to buy another currency.
All this is done through your real account that you opened and funded with money the brokerage firm of your choice and that Stdechlk to this market.
Before you begin a career in forex trading you need to open an Islamic account with a brokerage firm known as a brokerage firm on behalf of the broker Broker
What is the role of the brokerage company, exactly?
Under normal circumstances that the brokerage firm is a company that:
■ play the role of mediator between traders buyers and sellers.
■ provide a trading platform that has the price of spot foreign exchange, graphs, charts and indicators and data commands deals.
■ provide an economic services like news, analysis and recommendations and others such as customer service.
■ carry out transactions through the command established by the client on the trading platform.
■ brokerage firm and take payment for this work and other services and this is religiously permissible (known to take the Spread).
■ As you play the role of mediator between the merchant and the World Bank the main financier of funds transactions.
Here we hope that you do not choose a brokerage firm that wins through commissions financing because it is contrary to law, he chose the company that profited from during the spreads only (ie, fare difference between the purchase price and sale price on the deal) or profited from the commission, rather than borrowing, and do not choose a brokerage firm is funded deals, but chose a brokerage firm and the intermediary between you and the Bank are the main financier.
Does the brokerage firms by the censorship?
Brokerage firms are the best that are licensed by the law of their country and monitoring by the bank for her, and Huntaraf them later
Regulators in the currency market
To ensure that work with any brokerage firm in anywhere around the world must ensure that the company is subject to the laws of their country and have a license to do so by registering in one of the regulatory authorities or regulatory agencies, which in turn helps to not be duped into choosing a brokerage firm in forex, we our part, we will submit the regulatory bodies.
Do you want to learn names and country regulatory bodies?
* CFTC is an abbreviation for the Commodity Futures Trading Commission
Any Governmental Authority of the U.S. Congress is specialized in organizing work in the financial markets of different kinds. And is based in America.
* NFA are the National Futures Assosiation the Commission for the Commodity Futures Trading This association is responsible to the CFTC for the control of private institutions affiliated to it as well, recording and verification of compliance to the standards that ensure minimum safety of customers in this market in order to preserve the investor's funds and in order to strengthen the confidence of national and international capital markets of America. And is based in America
* FSA is the Financial Services Authority, the Financial Services Authority (FSA), United Kingdom. And is based in Britain.
* SFC is a body of securities in the Hong Kong Securities and Futures Commission. And based in Hong Kong.
* BCSC is the Securities Commission in British Columbia. And Canada-based
* MIFID is the law of the European Union which provides a harmonized regulatory regime for investment and services across 30 countries, is a member of the European Economic Area. The Markets in Financial Instruments Directive
(MiFID) and is based in the EU countries.
* DMCC is the center of Dubai sting multi Dubai Multi Commodities Centre and based in Dubai.
What is the mechanism of the brokerage firm with the client under the Islamic system?
The client opens an account with a brokerage firm and the new account is funded with money ..
Mediation is a company hire your agent on the stock exchange after you open an account with them is an agreement between you work on a system, then you fund your account with an amount of the money you have, from your bank or your credit card or through other funding.
He noted that most brokerage firms offer 3 types of new accounts:
(1) Micro Micro account funded, you need $ 100 or more, and these accounts are a great way for small dealers to train novices and to gain real experience in the early stages of their education.
(2) Mini Mini accounts you need funding to $ 2000 or more
(3) Standard Standard accounts you need funding to $ 2000 or more, and we recommend that the financing of $ 10,000 for the account Asattandr
Customer trading program trading company private mediation ..
After the arrival of your money in your new company mediation, the program trading brokerage company you will be asked to determine the extent of the deal that you want (any amount of funding requested by you to open the new deal) and also to identify the currency pair that you want to exchange the two and the price required to buy or sell him, plus all the transaction data to determine the price stop-loss or take profit rate.
Brokerage company to book the amount of insurance (the amount of margin) to open the new deals
Here brokerage firm in order to provide you the amount of the volume of money transaction for which you are requested to start your deal of the new (that is to provide you the amount of the volume of lute known as the amount of facilities leverage for the new deal), the brokerage company will book a part of the amount of money which may be deposited by you is already in your account When I opened your account with them, and the size of this segment is attached, the amount of deposit be in accordance with the terms of the agreement deal signed between you and leverage that will be provided to you company for the amount reserved, and this amount reserved is to be a lock to make sure the brokerage company recover money (finance) facilities Leverage without increase or decrease when you exit the deal.
A simple example to show you the above-mentioned ..
If you open an Islamic account with a brokerage firm, then this account is then funded with $ 1,000 and the account opening agreement signed between you specify that it will provide you with leverage 1: 100 Margin of 0.50% compared to the amount of margin deposit to open a new lot.
This means that any brokerage firm able to provide facilities for you cash from the bank interest-free you up to a maximum $ 100,000 tranche cash, you can trade in Forex market.
It is a deposit of 1000 $ × 100 leverage = $ 100,000 as seed money you will be provided by a brokerage firm from the bank, you can cash in all these facilities to open 10 deals in the case of whether each contract / lot to $ 10,000
This monetary easing will be given to you after you book a brokerage firm 0.5% of the amount of your deposit then and this booking on each lot granted to open a new deal, and this amount reserved is the emphasis on good intention in response to monetary easing is complete without the increase or decrease the insurance payment is essential to keep your position open.
This means that every $ 50 from your account balance is able to open up for you lot to $ 10,000
This means that if you open the 10 deals each lot by $ 10,000, it will be $ 500 reservation deposit of $ 100,000 to give you trade them.
Some may wonder ..
Do you believe, that the mediator provides funding of 100 times the client without the benefit?
Yes .. Broker does not lose something of its funding you first to ensure that the full amount back to him.
Secondly, because it uses the money deposited with him for the many open transactions.
Well, if what is the benefit of the bank from providing service margin or leverage?
Banks earn profits by settling deals at better prices at the domestic level the central bank in the market, and the banks get the profits through the benefits they get from the swap as a result of non-Muslims to their accounts.
Do you know, why is reserved for the amount of insurance from the balance of your brokerage firm?
We would like to clarify that, if you have traded in Forex Margin Muslim, you will not deal in the currency market funds that may be deposited by you with a mediator, but your money deposited by the broker only to be withheld the sum of them, is shown as a mortgage or insurance or guarantee, and this mortgage Reserved is to cover any losses that may occur, mediator Imulk amount of the volume of funds the deal you want it from the bank, and its relationship to the mediator does not Bouksairk not Barbg and withheld the amount of insurance to ensure that the refund was no loss or increase, you do not get no credit facilities, cash to open a new deal until after the Margin insurance payment, any cash you're working facilities agreed, and after the termination of the deal is this money to a brokerage firm without an interest or riba increase or decrease, this account of Islam.
* Note that there is a difference between the word (a mortgage) and the word (bet) The mortgage is permissible in Islam, there is no betting in Forex, and mortgage is just as mortgaging a house owned by or something else belonging to obtain funding and to ensure that the taxpayer the right you have, even contained what it borrowed, or borrowed from .
* He also noted that this funding is critical facilities, rather than a loan, because these amounts back to the bank and can not be towed back to the account or benefit of another purpose, but only leverage.
* Must know very well that the brokerage firm does not fund money they do not have the money to Tmulk tags, but is a brokerage firm, that is the mediator between you and the main financier of this money, which World Bank, here are key point within the provisions of Islamic Sharia these cases from the trade, if you get any financial facilities, the mediator must be without pay any interest on its response until there is no benefit to riba and also do not pay a commission on the financing funds, but may pay a commission on trading services is permissible legally and in accordance with the agreement between you and the brokerage company.
The original theme from here the definition of the forex market | site: Arab Institute Forums
Mediator does not sell or buy from the asset, but acts as an intermediary between the seller and the buyer, and intermediary in the provision of monetary financing without any interest is charged and without any commission, and the mediator does not lend at all, but the loan provided by banks only, which is already in the financial system of any country of the world.
* A very important point here is sometimes the Bank is working as a brokerage and a bank in the same time, is not recommended to deal with the bank directly, but must be between you and the bank and broker separately to avoid any suspicion of Lord ... Any Open Account with a brokerage firm plays the role of Alburkr between you and the bank can not open an account with the Bank plays the role of the bank and broker at the same time.
Brokerage company gives the customer cash facilities recorded in the account and the exchange be immediate
After requesting the opening of a new deal of any size lot you want it via the trading platform, here is the mediator would provide funds from the bank, and register all the facilities amounts of cash in your account immediately and quickly via the Internet to make buying or selling, and this recording proves legitimate for you.
Because as long as all the buying and selling (power of attorney) even if the online register immediately without delay, it is this award religiously, has authorized the scholars of this type of business online legitimacy, and it serves as a registry and the same sitting as estoppel, Valmtajrp in the foreign exchange markets award if it is the solutions and the same sitting in the contract, hand in hand, and the arrest of estoppel attached to arrest the real and this is not Lord it, operations are done immediately after the request of the merchant is not there is any delay in the case of profit or loss amount to the account immediately or put into their account immediately, that is, two currencies fall and win some in my seller and the buyer immediately with the immediate termination of the transaction gain or loss.
The fatwa of Sheikh Dr. Abdul al-Faqih, which authorized the arrest through the stock exchange over the Internet, and considered in the contract ..
He said: there is nothing wrong in buying and selling foreign currency from international stock markets if they are free caveats legitimacy signed in usury or ambiguity or ignorance or manipulation or deception, so long as the arrest is in the time of the transaction, which is expressed in the books of fiqh arrest in the contract and there is no deferred payment there is nothing wrong in that. If the transfer or sale of one currency must be deprived of symmetry and the differential between two currencies if there is nothing wrong in the differential if caught in the same body, and for more detail See answer to question no answer is No. 3099 and 3702, and Allah knows best
The abolition of riba and interest on credit facilities granted cash
Please note that the intermediary that provides trading services in accordance with Islamic law does not get the benefit of asthma compared to financial facilities, and does not take Komychen or commission on monetary easing, but it can take Komychen trading services of any fare, such as provision of the circulation in particular, or trading service in particular driven by price, or other acts of the Agency.
Here we would like you to explain something important, for the swap transaction fees "any interests on the money on funding for the passage of the deal, or more than one day"
* Ends today at five pm New York time.
This benefit abolitionist perfectly for the accounts of the Islamic, while the usual calculations when trading money finance, and continue to contract is for more than a day here on the company to add interest to the client account or are deducted from his account at the pair signed the contract and whether the client case of a sale or purchase and is an obstacle as it is considered usury forbidden in Islam.
So when the calculation of an Islamic brokerage firm make sure that there is no interest on contracts to install more than 24 hours, so no matter how long the open contract, and check the Rollover program trading platform be zero consistently.
In the accounts of the Islamic overcome brokerage firms on the obstacle, the abolition of interest to finance a final, because it is you close the contract at five pm New York time, then you open the contract again, directly and thus avoid dealing with the principle of interest usury altogether, and the company shall bear the cost of Spread instead of its customers.
Trading commission "commission of the Broker Award"
This has required some brokerage firms here, "a commission on trading services" which take a payment in return for carrying close deals and reopening at the end of the working day, rather than you, no commission (agency) the amount of wages fixed taken in advance and could be re-scheduled the passage of time no matter how long days benefit Trader funding is to connect your system, program trading accounts of the Islamic Sharia and this award, this commission has nothing to do with religion is the amount of funding for the implementation of taxi contracts electronically the conclusion of closing and reopening at the end of the day trade for the abolition of usury interest.
Examples of commissions trading services also award religiously:
(1) commission to link the expense of the client systems, programs to cancel the accounts of the Islamic interest.
(2) commission account manager who asks for a commission fee currency Mtajrth for the benefit of the client.
(3) broker or commission agent to take the agencies and trading of clients to provide Islamic accounts and services to its customers.
Spreads "the wages of intermediary"
Of course, the mediator does not work for free, the mediator known to be a broker and win through the brokerage, and brokerage in Forex means to get the mediator Spreads Spread and not the bank's share them at all (which gets the mediator taxi services through the difference between the purchase price and sale price) shows the spreads in the form of teams points, taxi services to provide program trading and market news and analysis of technical and customer service ... And other
Please note that Spread does not have any relationship with a final facilities leverage provided by the mediator of the financing bank to the client