Assalamu Alaikum wa Rahmatullahi wa Barakatuh,
I am a trader who works with prop firms and have doubts about the halal status of this practice. Below are my circumstances and questions:
1. I only trade currency pairs such as EUR/USD and GBP/USD via spot trading. I avoid haram instruments such as indices or shares of companies that are not halal.
2. I use my own analysis to place trades and do not take excessive risks.
3. I close my trades before roll-over to avoid interest (riba) and do not pay swap fees.
4. The prop firm I work with does use my analysis for their trading decisions. However, I do not consent to this and do not want my analysis to be used in any way. I understand that if my analysis is used for haram activities, despite my intention to trade halal, I could be held accountable for something I did not intend. Is it possible that I could be responsible for actions taken by others, even if my own intentions are pure and my trading is halal?
5. I receive 80% of the profits from my trades, and part of the money comes from the entry fees (challenge fees) paid by other traders who failed the evaluation phase.
However, I have some doubts:
1. I have read that some prop firms might use your analysis for activities that are haram. If this is true, am I held accountable if my analysis is misused, even though I do not give permission or desire for it to be used in such ways?
2. I know that leverage with personal capital or through a broker is haram. However, I have read that leverage via a prop firm might be permissible because the trading is conducted in a simulated environment. Is this correct?
3. My main question: If I trade based on my own analysis, avoid interest, have transparency in my contract, and do not trade haram companies or instruments, but part of my income comes from the fees paid by losing traders, is this practice halal?
I want to ensure my work is 100% halal, but these issues are causing doubts. Could you please clarify this for me?
JazakAllahu Khairan.