As Salam Alaykum,
Let’s assume that we are at the opening of the European markets (03:00AM in New York), Monday.
I buy and sell stocks (day trading) then I decide to stop at 9:00 am. And I want to use my profits to operate in the American market.
We agree to say that the delivery payment deadline will only be effective on Wednesday (D+2).
But I have the possibility to buy currencies because the currencies are also delivered at D+2, but if Tuesday is a public holiday in Europe my shares will be settled at D+3 and therefore I will not be able to buy currencies with my account cash.
If my European stocks will be set at D+2, I can buy dollars to day trade on the American market.
at the end of the American session, then I convert dollars again into €/£… to operate another market and or hedge against the dollar exchange risk etc…
And repeat this process several times, so is using undelivered currencies to buy stocks or other currencies allowed?
I would like to clarify, I do have a cash account, European cash accounts are different from American cash accounts, because there is no Good-Faith Violations rule.
When I click to convert my currencies, my currencies instantly appear in my account and I am immediately subject to currency exchange risks.
Is this permitted with the qabd al hukmi methodology?
My broker is Interactive Brokers Ireland