Trading Tips & Prop Firm Strategies | Cointracts Learning Hub

Prop firm trading's permissibility in Islam is a subject of significant debate among scholars. Many deem conventional models haram (impermissible) because the structure often resembles a loan that generates interest (Riba) and involves excessive uncertainty (Gharar) with the challenge fee. However, a prop firm could potentially be halal (permissible) if its contract is structured as a genuine profit-sharing partnership (Mudarabah), where both parties share risk and reward according to Shariah principles.

A prop trading firm, short for proprietary trading firm, is a company that provides financial capital to traders to speculate in markets like crypto, forex, stocks, and commodities. Instead of using their own funds, traders leverage the firm's capital, and in return, the firm takes a share of the profits. This model allows talented traders to access significant funds and bypass the limitations of personal capital, while firms profit from a pool of skilled individuals without bearing the full risk of employing them in a traditional sense.

FTMO is widely regarded as a legitimate proprietary trading firm that provides funded accounts to traders who pass its two-step evaluation process. It is not a scam but a performance-based talent evaluation company. FTMO operates on a model where traders must first prove their profitability and risk management skills through a "Challenge" and "Verification" stage before being entrusted with the firm's capital, sharing in any subsequent profits.

Introduction Trading funded accounts is rapidly becoming the preferred way for both new and experienced traders to enter the crypto markets without putting personal capital at risk. Instead of trading your own funds, you can prove your skills in a…

Green Means Go Right Not Always:  Learn Why Not Every Green Candle Is Your Friend In the world of trading, the appearance of a green candle often brings a sense of optimism. It’s typically seen as a signal of rising prices and potential profit. But is it always wise to assume that a green candle is your friend? Let’s explore green candle analysis. These bullish indicators may not always be as simple as they seem. To truly grasp the implications of a green candle, it’s essential to understand what it represents in candlestick charting. A green candle indicates that the closing price of a trading period is higher than the opening price. This can suggest that demand has outweighed supply during the period, leading to a price increase. However, not all green candles are created equal. Their significance can vary based on their context within the broader market trends and patterns. It’s important to look at these candles as part of bullish candle patterns. These patterns can give us better insights…