OctaFx Syariah: Restrictions, Features and Systems

Brokers that apply sharia principles in carrying out their policies are indeed excellent for Muslims who want to invest safely. One of the brokers that provides this facility is OctaFx. Then, what is the OctaFx Syariah trading mechanism? Listen here.

OctaFx Syariah Restrictions, Features and Systems

Restricted Financial Activities

You need to know that Octafx, which uses sharia principles, has certain limitations according to religious rules. Therefore, knowledge about this is mandatory so you don't feel disadvantaged when you already have an active account.

Overnight Rollovers

Under sharia law, trading must close at 5pm based on New York time. Overnight rollovers generally involve accepting swap points and holding positions open longer after the trading day closes.

Loan

Every trader who uses OctaFx Syariah is also limited in terms of borrowing capital or funds. As long as there is no interest or usury in the transaction process, then it is still in a safe realm.

If you are going to make a loan through a bank or other financial institution, these rules must be remembered and obeyed. This is indeed quite different when compared to OctaFx accounts in general.

Margin Deposits and Interest

Margin deposits or involve adding interest are also prohibited when you use an OctaFx sharia-based account. All forms of interest and margin in trading are prohibited for any reason.

Trading on Margin

The financial activity that is restricted to Islamic account number 4 is trading on margin. As we all know that the margin in a transaction will harm one of the parties, especially the trader himself.

All the difference and shortfall during the sale will be counted as debt, so the trader will have to pay for it. The concept of margin can also be interpreted as borrowing capital from brokers for traders. This is also prohibited and not in accordance with religious law.

Forward Sales

Forward sales are also limited when you use an OctaFx Syariah account because they have deviated from religious teachings. This is the same as buying fruit that is still in the form of flowers, so the transaction is considered as a battle of fate.

The price that applies to Forward sales is also considered to be detrimental to one of the parties because future contracts are agreed now. If the price rises, of course the seller will lose money because he sells his assets cheaply, and vice versa.

Short sale

The last limitation you need to know is the short sale. That is, sales that are able to dominate shares and involve the sale of subsequent assets. Therefore, short sales will be limited when using a sharia based OctaFx account.

Other Features in OctaFX Syariah

If you want to use a trading account that applies sharia principles, then this can be realized easily. Brokers also do not provide different services and facilities to Muslim customers. All are considered the same and have different positions and strategies.

Some of the features included in the sharia-based OctaFx are leverage up to 1:500, competitive spreads (starting from 0.0 pips), and a minimum deposit of only $100. Commission-free trading is also one of the facilities provided by brokers for their Muslim customers.

OctaFx Syariah Account Registration Mechanism

The first step to get a sharia-based OctaFx account is to change the regular account to an Islamic one. The customer must also be directly involved during account registration. You will also be asked to fill out an online form after receiving a verification email from the broker.

Wait until the broker states that the account registration was successfully made or it gets rejected. Check carefully all the data you enter. If the application has been received, you can immediately fill in the balance and then trade.