How EqualEX transforms traditional trading in accordance with Sharia principles

[Fariz]

EqualEX is a platform that offers a unique approach to investing in cryptocurrencies rooted in the principles of Islamic finance, known as Sharia. Instead of relying on traditional financial instruments that often conflict with Islamic law, EqualEX develops and implements new mechanisms that align with the fundamental tenets of Sharia. Let's explore how this platform offers alternative tools to the traditional ones.

Margin trading, leverage, and their alternatives

Traditional margin trading involves borrowing funds from a broker to increase the trading volume of a specific product. However, this practice goes against the Islamic prohibition on riba, which refers to usury. To address this, EqualEX likely offers the following alternatives:

• Islamic finance: The platform utilizes Islamic finance tools such as mudaraba (profit-sharing financing) and musharaka (co-ownership) to provide investors with additional funds for trading without the need for direct borrowing at interest.
• Tokenized assets: The platform offers tokens that represent a share of the company's real assets. By purchasing these tokens, investors become co-owners of these assets and share in the company's profits.

Futures, options, and arbitrage operations

These tools are often associated with high levels of speculation and uncertainty, which may be at odds with the principles of Sharia law. However, EqualEX offers the following alternatives:

• Structured products: The platform can develop structured products that allow investors to earn income from changes in the price of the underlying asset without being speculative.
• Fixed income instruments: Instead of futures and options, the platform offers fixed income instruments such as Sukuk, providing a stable income stream.
• Arbitrage based on real assets: Instead of traditional arbitrage involving price differences in different markets, the platform offers arbitrage based on real assets like commodities or real estate.

Operations for placing bets, earning money, and financing

• Placing bets: In EqualEX, betting is structured to avoid elements related to riba. The commission for placing bets is tied to a share of profit from checking blocks or providing liquidity to pools of players.
• Revenue generation operations: This term refers to various types of passive income that are compatible with Sharia law, such as participating in Islamic funds or earning income from real assets.
• Financing operations: Instead of traditional interest-only lending, the platform uses Islamic finance tools like mudaraba or musharaka to finance projects.

Key benefits of the EqualEX approach:

• Compliance with Sharia law: All financial instruments on the platform are designed in accordance with the principles of Islamic finance.
• Transparency and reliability: The platform ensures a high level of transparency and reliability for all transactions.
• Access to new investment opportunities: At EqualEX, investors have access to a wide range of tools that align with their religious beliefs.

It is important to note that the specific set of tools and their implementation mechanisms on EqualEX may evolve over time. For the latest updates, be sure to subscribe to the news feed.

Conclusion

EqualEX stands out as an innovative platform for the cryptocurrency market, offering financial instruments that align with the principles of Islamic finance. This platform provides Muslim investors with new opportunities to participate in the growth of the crypto industry without compromising their religious values.