Is Crypto Leverage Trading Halal?

Leverage is a simple technique to increase your trading profits. It can significantly increase your trading earnings. Of course, it sounds appealing, yet, it is a two-edged blade that, when not properly managed, becomes a nightmare for many newbie crypto traders. You must understand what leverage is, how it works, and how to limit your risk while utilizing it before it can be concluded if it is haram or halal.

What is Leveraging in Crypto?

Leverage enables you to have greater exposure to the cryptocurrency market than the amount you deposit to initiate a transaction. It’s more like utilizing borrowed cash to start transactions while only delivering a percentage of the actual value of the deal.

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