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The question

Is the martingale strategy in Forex trading, in which the contract size (lot) is doubled after each loss to compensate for losses and achieve profit with a single trade, Islamically permissible?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Trading in the Forex system involves شرعية (-compliant) caveats such as margin and overnight holding of positions. If the speculator can avoid these caveats, then there is no harm in adopting the multiplication method for buying and selling, with the intention of entering into multiplied contracts upon loss to compensate for it and to accrue profits, while being cautious of the high risks of this method, except for those with expertise.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
146302
Imported
Translation status
Source text, unreviewed
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