Islam and trading:
Aim here is to discuss the legitmacy of 'trading' forex or any other instrument for short-term gain.
My understanding is as below:
Any form of 'trading', where there is zero intention of taking delivery or using the FX proceeds for valid commercial purposes is considered HARAAM.
Trading forex where there is a legitimate need for different FX currencies, ie. going on holiday, need to send money abroad, buying items from abroad, all these are valid and legitimate reasons for exchanging one currency for another.
Where there is zero intention of taking delivery, where the only objective is to try and guess if a currency will rise/fall, is considered gambling and is strictly forbidden in Islam.
This applies to stocks as well as stocks or any other trading.
Islam is about responsible ownership and most short-term traders do not care about responsible ownership, they are just worried about short-term price movements.
Also, shorting something you do not own, is strictly not allowed in Islam ie. if you have a US$ account and you sell dollars for CHF, this is allowed provided you own the actual number of US$'s. However you cannot sell CHF for US$'s as you do not own any CHF.
Also, trading on margin is strictly not allowed. You cannot buy/sell in a greater amount that what you have. That is why, even in valid commercial transactions, if you have only $500, you can only trade $500, ie a leverage of 1:1. Anything trading leverage of greater than 1 is strictly forbidden.
ALL swap points are Haraam, whether it's receiving or paying.
All Gambling is strictly Haraam.
Lying about past performances is definitely a sin and any earnings based upon lies and gambling is strictly not allowed and is Haraam. (so all signal providers who lie about their past - be aware)