Question:
Trading on a simulated stocks account
1st you purchase a futures trading account it's basically like trading stocks -but on a simulated(fake) account.
you need to make a certain amount of money
once you pass this simulated account
they allow you to purchase what they call a "funded account" now this funded account is also simulated but any money that you make in this funded simulated account they let you keep for example you get to keep 100% of the first 10k dollars and then there is a 90-10 profit split
These companies make money by people blowing their account if they lose a certain amount of money on the simulated account then they need to buy a new evaluation and pass in order to get to the funded account
What are your thoughts about this?
Answer:
Hello,
My thought on this are, that I don’t see any halachic issue here. Other than that, companies are pretty smart. They are making a lot of money on all of those amateurs who think they will make major money trading commodities. Being the commodities is very volatile, and one can lose their whole original 5k investment in a day or two, so people are apt to panic, and sell when it goes down a drop, then take a loss, until they lose all of their original investment on “chalomos”.
Best wishes
