Permissibility Status Of Earnings By Trading Indices On Funded Account
Sir, traders analyze an asset and decide whether the price will go up or down, then open a position based on their analysis and risk tolerance. Brokers allow retail traders to control positions much larger than their actual capital through leverage. For example, if I have $10 and use 10x leverage, I can control a position worth $100, and profit or loss is calculated on that $100.If I predict that the price of a halal company like Microsoft will go down and open a sell position, I profit if the price moves in my favor, and I incur a loss if it moves against me. In leveraged positions, the broker lends the extra capital—in this case, $90—and will forcefully close the position if my losses exceed my initial $10 to protect themselves.CFDs are zero-sum: my profit comes from the losses of the broker or other traders whose price predictions go against mine. I did not own any Microsoft shares; I earned profit purely from its price movement. Jazakallah
This seems to me someting like gambling. @Umer25 may reflect some light on its nature.