Islamic Swap Free Trade Account

When it comes to online trading Bitcoin contracts there is the payment of swap every day. Swap is a rollover fee charged by the broker so that to keep an open position overnight. Traders who keep their trade open until the next day have to pay this rollover fee or what is known as swap fee. This payment is a form of interest that is paid by a trader or paid to a trader for opening a Bitcoin BTCUSD position.

Because Bitcoin is traded against USD, and USD has an interest rate of 0.75% it means that a trader BTCUSD against USD will have to pay or will be paid interest according to the trade they have opened.

Buy Trade - Buying BTCUSD means a btcusd trader will buy Bitcoin & sell USD, Selling USD means one will have to pay interest of 0.75 %. But this 0.75 interest is a year, henceforth every day the BTCUSD trader will be required to pay a small fraction of this 0.75% interest.

Sell Trade - Selling BTCUSD means a btc/usd trader will sell Bitcoin and buy USD, buying USD means a trader will be required to be paid interest of 0.75%. But this 0.75 interest is a year, henceforth every day the bitcoin trader will get paid a small fraction of this 0.75% interest.

Whereas, this amount of interest being paid by the trader or getting paid to the trader is not much, there is the issue paying and getting paid interest which is an issue in Islamic Religion.

This issue of paying & getting paid interest which is an Issue in Islamic Religion brings us to the Swap Free Islamic Trade Accounts. Islamic Religion doesn't allow paying and getting paid interest, for Islamic Bitcoin BTCUSD traders there is an account designed in accordance with Islamic Values: Known as Swap Free Islamic Trade Account.

For this swap free account a btcusd trader will not pay the overnight rollover interest on BTCUSD and will also not get paid any interest, this is also known Shariah Compliant Account where there is no paying of RIBA (interest) - also referred to as Islamic Accounts.

For a btc/usd trader to get a swap free trading account, a btcusd trader has to navigate to a broker and choose option of "Islamic Trade Account", this option is provided under the Trade Accounts Section of the online Bitcoin broker website specifying the instructions of opening one of these swap free accounts.

Once a trader opens this Islamic Bitcoin Account, then BTCUSD roll over interest is removed. Once this no paying of interests set, if a trader is using the Bitcoin platform - in the MT5 platform then the roll over interest record will be reset to zero.

Islamic Swap Free Account - Swap Free BTCUSD Account - What's Swap Free Bitcoin Account?

Islamic Forex Account - Swap Free Bitcoin Account

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

These open position positions that pay a roll-over interest are commonly referred to and known by traders as Overnight Positions. Day Traders rarely leave their trade transactions opened overnight and close all of them before the close of the day. Swing Traders on the other hand may leave their trade positions opened for a few days & leave these trade positions overnight so that to capture more movement in the price trend.

Once a trader finds a swap free online Bitcoin trading broker and opens and Islamic Bitcoin Account, the BTCUSD trader will have the same conditions as those of other Bitcoin traders, except for the payment of rollover fee. This means a btc/usd trader will use the MT5 Platform like all the other traders, the BTCUSD trader can trade Bitcoin & also all currencies, all stock indices, all CFDs, all precious metals and all the other Trading Instruments provided by the broker alongside Bitcoin BTCUSD.

However, be careful in selecting a swap free online broker, some online brokers will add a commission or add some points to the spread you trade with to cover the swap (This are Swap Fee Brokers). This isn't supposed to happen as a btc/usd trader will still be charged for the interest even though it is disguised as another type of charge, good online brokers do not add any commission nor do they add any charge on to the spreads for these swap free accounts.

Another thing is that some brokers will charge traders rollover interest if the open position held by a btc usd trader is held for more than five days or more than seven days, this should not be the case and the broker should not charge any carry over interest even if the open position positions are held open for more than 5 or 7 days. For traders wanting to open this swap free Account it's good to check for any additional terms & conditions of trading for the Islamic Swap Free Account that ==22==you--areyou're going to be opening to ensure that the online broker you choose is really a - no swap broker.

Swap free accounts were introduced by trading brokers after demand for carry over interest free accounts grew among Islamic Bitcoin traders and forex traders who trade online. The traditional account entailed paying of rollover interests in what is referred to as rollover interest. This led to introduction of Interest Free Accounts that Islamic traders could open and still keep in line with their rules on no paying and getting paid interest while the Trading Instruments such as Bitcoin and other online currencies.

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Islamic Swap Free Trade Account