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Islamic Swap Free Account

In Bitcoin, swap fees are incurred daily, representing the interest rate credited to Bitcoin, akin to how the Australian Dollar earns interest of around 5%. Consequently, a fraction of this percentage is awarded daily to holders of the Australian Dollar.

This naturally raises the matter of interest payments - the giving and receiving of which is prohibited under Islamic Doctrine. The Islamic faith forbids both the payment and receipt of interest: for Muslim bitcoin cryptocurrency traders, a specialized trading account has been designed and implemented in adherence to these principles, termed Swap Free.

With this btcusd cryptocurrency account, a trader won't have to pay interest for holding bitcoin trades overnight, and they also won't receive any interest: this setup follows Shariah law, where paying RIBA (interest) is not allowed: these are also called Islamic Accounts.

To get a swap-free bitcoin account, pick an Islamic broker. Select the Islamic option in their accounts area. It follows rules for these special setups.

When someone starts a this btcusd cryptocurrency account for trading, the interest from Bitcoin rollovers is taken away. After this setting about not owing or getting interest is done, the roll over fee shown will go back to nothing if the trader uses something like the MT4 platform.

Rollover fee is charged daily at the end of the trading day for those holding bitcoin for which a swap is to be applied. As a trader if you do not want to pay this roll over you should close-out your trade positions before the end of the day, that way you'll not pay the roll over fee as you are no longer holding open bitcoin trade. Because the bitcoin cryptocurrency market does not open on Saturday & Sunday, the swap interest for these 2 days will be deducted on Wednesdays, meaning on Wednesday one will pay the rollover interest for Wednesday, Saturday and Sunday, and hence on Wednesdays this swap fee interest is paid 3 Times.

These positions that pay a swap interest are commonly referred to and known by traders as Overnight Trade Positions. Day Traders rarely leave their trades opened overnight and close all of them before the end of the day. Swing Traders on the other hand might leave their trades opened for a couple of a few days and leave these trade positions overnight so that to capture more movement in the bitcoin price trend.

Once a trader finds a swap free cryptocurrency broker and opens and Islamic Trade Account, the online trader will have the same conditions as those of other traders, except for the paying of swap fee. This means a btc usd trader will use the MetaTrader 4 Software Platform like all the other traders, the online trader can trade all currencies, all indices, all CFDs, all metals and all the other Financial Instruments provided by the bitcoin trading Islamic broker.

But be careful when picking an online broker that doesn't charge swap fees: some will add a fee or increase the spread to cover it (Swap Fee Online Broker). This shouldn't happen because a bitcoin trader would still be paying interest even if it's hidden as another fee: good bitcoin brokers don't add fees or increase the spread.

Additionally, it is important to note that certain brokers may impose rollover interest, commonly referred to as a swap fee, on traders if a position opened by a BTC/USD trader remains open for more than 5 days, or in some cases, more than 7 days. This practice should not occur, and brokers ought not to charge any carry-over interest, regardless of whether the open trade transactions are maintained for over 5 or 7 days. For traders interested in establishing a swap-free account with an Islamic bitcoin trading broker, it is advisable to review any additional terms and conditions associated with the Islamic Account you intend to open, to ensure that the broker you select is genuinely a no-swap broker.

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Islamic Bitcoin Account

Brokerages introduced swap-free accounts subsequent to an escalating demand from Islamic bitcoin traders for accounts devoid of carry-over interest. Conventional accounts mandated the payment of rollover interest, which is referred to as rollover interest. This situation prompted the creation of Interest-Free Accounts that allowed Islamic traders to maintain compliance with their principles against receiving or paying any form of interest.

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