Trade Bitcoin Trading

Islamic Swap Free Trade Account

When you trade Bitcoin contracts online, you have to pay a daily fee known as a swap. The swap is a cost from the broker for keeping a trade open overnight. If traders leave their trades open until the next day, they must pay this fee, which is similar to interest on their Bitcoin BTCUSD positions.

Since Bitcoin is traded against the US Dollar, which maintains an interest rate of 0.75%, this implies that a trader executing a BTCUSD trade against the USD will either incur interest charges or receive interest payments depending on the position held.

Buy Trade - When trading BTCUSD, buying Bitcoin and selling USD means the trader will pay 0.75 % interest. However, this 0.75% interest is for the entire year, so each day the BTCUSD trader must pay a small part 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.

Conversely, while the actual amount of interest exchanged - either paid by or received by the trader - may be minimal, the act of paying and receiving interest presents an issue within the context of the Islamic Faith.

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.

With this exchange free account, a btcusd trader will not be charged overnight rollover interest on BTCUSD and will also not be compensated any interest. This is also known as a Shariah Compliant Account, sometimes referred to as Islamic Trading Accounts, where there is no paying of RIBA (interest).

To get a swap-free trading account as a BTC/USD trader, go to your broker's website and pick the Islamic Trade Account option. This option is under the Trade Accounts area of the online broker's platform, where you can find detailed steps for getting a swap-free account.

After a trader creates this Islamic Bitcoin Account, BTCUSD interest is not charged. Once this setting of no interest payments is active, if a trader uses the Bitcoin platform - in the MT5 platform - then the interest record will be set back to zero.

Explanation of Swap-Free Accounts for Bitcoin Trading (BTCUSD)

Islamic Forex Account - Swap Free Bitcoin Account

If you keep a Bitcoin trade open past the end of the day and there's a fee, you'll be charged daily. If you don't want to pay this fee, close your trades before the day ends. Then, you won't pay the fee because you won't have any open Bitcoin trades. Since the market is closed on weekends, the fee for those days is charged on Wednesdays. This means on Wednesdays, you pay the fee for Wednesday, Saturday, and Sunday. So, on Wednesdays, this fee is charged 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 & might 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.

Caution is advised, however, when selecting an online broker that claims to be swap-free, as certain brokers will apply a commission or increase the spread you trade with to offset the swap costs (these are categorized as Swap Fee Brokers). This practice is inappropriate because a btc/usd trader is still incurring interest charges, albeit masked under a different fee. Reputable online brokers will impose neither a commission nor any additional charges to the spreads for these swap-free accounts.

Keep in mind that some companies charge interest if a BTC/USD trade stays open for more than five or seven days. Ideally, companies should not charge this kind of interest, even if trades are held longer than that, to make sure trading is fair for everyone. If traders want to open this kind of account with no extra fees, they should check for any extra rules about trading for the Islamic Swap Free Account they are opening, to be sure that the online company they pick is really a company with no extra fees.

Brokers introduced swap-free accounts following an escalation in demand for rollover interest-exempt accounts among Islamic traders involved in Forex and Bitcoin trading. Conventional accounts mandated the payment of rollover interest charges. This necessity prompted the creation of Interest-Free Accounts, which Islamic traders could utilize while adhering strictly to their religious mandates against receiving or paying interest on financial instruments like Bitcoin and other digital currencies.

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