Is a leveraged transaction permissible if there is no overnight fee and the company charges a fixed fee on the transaction (0.3% of the original capital) regardless of the use of leverage?
We have previously explained that the reason for the prohibition of dealing with financial leverage is that it is a loan from the brokerage company to the client, and it is a conditional loan, stipulating that transactions be conducted through it. This brings a benefit to the lender (the company) due to the commission, which increases with the volume of transactions. This concern is negated if the transaction fees and the buying or selling commission do not increase with the amount. However, there is another concern, which is the broker's condition that the client benefits from the margin amount through them, which means stipulating a benefit in the loan, and that is impermissible.
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