1. Is the Spot Challenge Halal?
Yes, the spot challenge is designed to align with halal trading principles. Spot trading involves the direct purchase and sale of assets without leveraging or speculative contracts, making it suitable for traders following Islamic guidelines.
2. Are Challenge Fees the Primary Source of Capital?
Yes, challenge fees are the primary source used to provide the capital for funded accounts. There are no speculative elements or additional costs beyond the initial challenge fee.
3. How Are Funded Accounts Structured?
The evaluation phase is conducted on a demo account, ensuring no real money is involved during the challenge. Once funded, you will trade with real funds, and payouts are derived purely from the profits generated by your trading activity.
4. Does Profit Sharing Include Speculative Instruments?
For spot challenges, the profits come exclusively from halal-compliant spot trading. If you opt for a futures challenge, profits could involve speculative derivatives, which may not align with Islamic principles.
5. What Are the “Other Sources” of Funds?
The “other sources” refer to the firm’s operational reserves, which come from fees and commission-based business activities. These sources are structured to remain halal-compliant, particularly for traders who prioritize spot trading.
6. Are Overnight Positions Allowed?
In the spot challenge, positions cannot remain open for longer than 24 hours, ensuring alignment with the firm’s rules targeting scalpers and day traders. This short-term trading focus avoids potential issues tied to prolonged holding in speculative conditions.
7. Are There Any Riba (Interest) Elements?
No, the spot challenge structure avoids any involvement with interest (riba). There are no leveraged trades or loans, which ensures compliance with Islamic financial principles.
8. Can I Focus Solely on Spot Trading?
Absolutely. If you select a spot challenge, your trading activity will focus solely on spot trading, avoiding any speculative derivatives or leverage.
9. How Is Profit Sharing Structured?
Profit sharing begins at 70% for the trader and can scale up to 90% based on performance. These profits are derived solely from your successful trading activity.
10. Are the Payouts Halal?
Yes, payouts are derived from the profits of your halal-compliant trading activity and are paid directly to you in USDT or other approved forms.