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Forex And Islam
24/08/11
Author: Gil BZ
The potential for Islamic Forex has become possible due to Islamic Forex brokers and brokers that offer the possibilities for Islamic Forex trading. First of all, the method of trading has nothing to do with religion, although the name of it certainly implies it. You don’t have to be a follower of Islam to trade the market, and no one checks your religious affiliation.
According to Islamic law, you can’t pay or take interest for services rendered. So, for Forex traders this directly affects any trading that happens overnight because of interest rates assigned to swap trades. Because of the traders that would be interested in trading Forex otherwise, there became brokers available to compensate these situations.
There wasn’t a situation that the broker had to give up business, but in order for them to become Islamic Forex brokers, he knew that he had to pay the inevitable interest. Someone had to, and the respective agencies involved weren’t willing to forego the charges. What happened was rather logical. If the broker was willing to pay the interest, then he adjusted the pair spread to increase his income. It became all part of Islamic Forex.
If a trader is only going to day trade or scalp then he has no need for Islamic Forex or Islamic Forex brokers. On day trades and scalping, there is no interest involved so the topic is a non-starter. The Forex trader does not take a position overnight and there are no interest charges on trades made during a Forex trading session.
The primary guiding principle of Islamic Forex is the ban on the payment of interest, or riba (usury). This system of finance follows Islamic rules on transactions, or fiqh muamalat, which assert that money be earned not from interest, but from commodities and services. So, the Islamic Forex brokers accommodate and make his money in other ways. The spreads might be a bit different, but it allows worldwide trading which became all-inclusive. Everybody wins.
Article Source: http://www.articlesbase.com/currency-trading-articles/forex-and-islam-3682473.html
About the Author
DailyForex provides you with all the resources needed to succeed in Forex trading. We offer the FX market’s most in depth broker reviews, which will guide you in choosing a Forex broker that best meets your needs. You can also surely benefit from our comprehensive Forex news, analysis, and articles.
Islamic Banking
22/08/11
Author: Ahsan Ayub
ISLAMIC BANKING industry is a very different industry compared to the banking sector we see these days. This type of Banking is totally based upon the principles of Islamic law which is also known as Sharee’ah in Arabic. This style of banking industry follows the Islamic economics and it forbids the involvement of interest. The Interest in the Islamic principle is strictly prohibited and is considered as Haraam (forbidden). Many banks in Muslim and non-Muslim countries follow Islamic banking, the Islamic banking sector has experienced a boom in the late years of 20th century.
Islam terms interest as « Riba » (vigorish), and all the products introduced by Islamic Banks are Riba-Free that means that it does not involve interest neither in payments nor on loans. The main concept of this type of baking is that a particular amount of service charged should be charged from the person who is experiencing the banking service, but interest is something should not be applied at any stage in any Islamic Banking Product.
Several financing activity concepts were developed during the early stages of Islamic Banking; these include different forms of partnerships « mufawada » which is the first form of partnership, « mudaraba » limited form of partnership and « al-mal » capital investments. Many of these financial concepts that were developed in the Islamic banking stages are still in practice in popular non-Islamic banks.
Many Muslims are reluctant to invest their money because of the concept of Interest is prohibited in Islam and therefore this type of banking is important in catering the needs of this important segment of the market in both Islamic countries as well as non-Islamic countries. As this style of banking offers a lot more to all its customers therefore it has been gaining popularity not only in the Islamic region but in the non Islamic regions as well.
Article Source: http://www.articlesbase.com/finance-articles/islamic-banking-3342938.html
About the Author
The article is written by Ahsan Ayub. Ahsan has been working for Marish Solutions and has been writing articles on different topics including business, marketing, finance, entrepreneurship etc. Besides this, the company Marish Solutions offers a range of services broadly in the category of Business and IT Solutions. The company also provides consultation services to many small and medium sized businesses. For more details regarding the offerings of Marish Solutions visit company website: http://www.marishsolutions.com
Islamic Banking and Finance
20/08/11
« Shariah compliant currency trading »
Online currency trading can be shariah compliant, according to ACM director Iskandar Al Hajjar. But how much money can you make and what happens if the internet crashes? Al Hajjar has the answers.