Binary options trading wiki halal or haram

I want to know if binary options on internet trading broker is Halal? I want to know if binary options on internet trading broker is Halal? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount of some asset or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff). They are also called all-or-nothing options, digital options (more common in forexinterest rate markets), and fixed return options (FROs) (on the American Stock Exchange).1 Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”“Up” option or a “Put”“Down” option. Binary options are offered against a fixed expiry time.2 The most common binary option is a “high-low” option. Providing access to stocks, indices, commodities and foreign exchange, a high-low binary option is also called a fixed-return option. This is because the option has an expiry datetime and also what is called a strike price. If a trader wagers correctly on the market’s direction and the price at the time of expiry is on the correct side of the strike price, the trader is paid a fixed return regardless of how much the instrument moved. A trader who wagers incorrectly on the market’s direction loses herhis investment. If a trader believes the market is rising, shehe would purchase a “call.

” If the trader believes the market is falling, shehe would buy a “put.” For a call to make money, the price must be above the strike price at the expiry time. For a put to make money, the price must be below the strike price at the expiry time. The strike price, expiry, payout and risk are all disclosed at the trade’s outset. For most high-low binary options outside the U. S., the strike price is the current price or rate of the underlying financial product, such as the S&P 500 index, EURUSD currency pair or a particular stock. Therefore, the trader is wagering whether the future price at expiry will be higher or lower than the current price.3 For example, one purchases a binary call option to wager the price of the S&P 500 Index at the strike price of $1400 based on one’s assumption that the S&P 500 will rally above $1400. One chooses a fixed expiry time of 45 minutes with a strike price of $1400. One can invest any amount such as $10 or even $15000. Therefore one invested $150 in the binary call option for $1400. The S&P 500 price at expiry determines whether you make or lose money. Assuming the price after the expiry time was $1402, therefore one would make a profit and also maintain one’s original investment of $150.

However supposing the price was under $1400, then one would lose the original investment of $150 altogether. If the price was exactly the same upon expiry, then one would not gain nor lose anything, instead one would receive one’s investment of $150. Binary trade options are essentially the sale of a right which one party gives to another in return for a fee. The option holder purchases the option to hedge against possible negative price changes in a bid to minimise his loss. Shariah does not recognize the sale of such rights, therefore binary options are impermissible. Furthermore Binary options are impermissible since they contain the element of Gharar (Future Uncertainty).4 And Allah Ta’āla Knows Best. Durban, South Africa. Checked and Approved by, Mufti Ebrahim Desai. لبحر الرائق شرح كنز الدقائق ومنحة الخالق وتكملة الطوري (6 80)1. (قَوْلُهُ وَالْحَمْلِ وَالنِّتَاجِ) أَيْ لَا يَجُوزُ بَيْعُهُمَا، وَالْحَمْلُ بِسُكُونِ الْمِيمِ الْجَنِينُ، وَالنِّتَاجُ حَمْلُ الْحَبَلَةِ، وَالْبَيْعُ فِيهِمَا بَاطِلٌ لِنَهْيِ النَّبِيِّ – صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ – عَنْ بَيْعِ الْحَبَلِ وَحَبَلِ الْحَبَلَةِ، وَلِمَا فِيهِ مِنْ الْغَرَرِ. الدر المختار وحاشية ابن عابدين (رد المحتار) (5 62) (قوله وبيع الحمل) بسكون الميم (قوله وجزم في البحر ببطلانه) «لنهيه – صلى الله عليه وسلم – عن المضامين والملاقيح وحبل الحبلة» ، ولما فيه من الغرر. العناية شرح الهداية (9 108) قَالَ الْمُغْرِبُ فِي الْحَدِيثِ : ” : وَهُوَ الْخَطَرُ الَّذِي لَا يَدْرِي أَيَكُونُ أَمْ لَا كَبَيْعِ السَّمَكِ فِي الْمَاءِ وَالطَّيْرِ فِي الْهَوَاءِ .

Is Forex Trading Allowed in Islam? *This article was updated on May 17, 2017* The question as to whether Forex trading is permissible according to Islamic law is a difficult question to conclusively answer. Although Islamic authorities certainly agree that currency exchange under certain conditions is halal (i. e., permissible according to Islamic law), there is some dispute regarding under exactly what conditions. Let&rsquos examine the issues one by one after looking at the saying on the subject by the Prophet Mohammed (peace be upon him): &ldquoGold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, same for same, hand to hand. If the types are different then sell however you like, so long as it is hand to hand.&rdquo Is there such a thing as halal Forex trading? Is Forex halal or haram? Forex Trading - Halal or Haram Fatwa. Usury is of course completely prohibited in Islam, and is defined very widely. This implies that any kind of deal or contract which involves an element of interest (riba) is not permissible according to Islamic law.

For a long time, retail Forex brokers reflected the market practice of paying or charging to the trader the interest differential between the two components of any currency pair whose position remains open overnight. Eventually, most Forex brokers responded to market forces (and pressure from Islamic traders) by becoming &ldquoIslamic Forex Brokers&rdquo and offering &ldquoMuslim Forex Accounts&rdquo which operate without standard interest payments. You might ask how they did so and maintained the profitability of their operations. This was achieved by charging increased commissions in spot Forex trades, and this practice has become the hallmark of nearly all Islamic Forex brokers. Arguably, this in itself is just a camouflaged interest component, and if this view is taken, it makes Forex trading problematic according to Islamic law. The interest problem also eliminates any possibility of trading Forex forwards, as there is always an interest element involved in these transactions. However, &ldquoregular&rdquo spot Forex trading offered by Forex brokers, with no overnight interest payments or charges, could clear the hurdle of riba. What Islam Says on Online Forex Trading. Having reduced the issue to one of trading spot Forex and assuming there is no interest element deemed to be involved, we move onto the next issue. It would seem to be permissible only &ldquoso long as it the exchange is hand to hand&rdquo.

So clearly, the Prophet Mohammed (peace be upon him) had in mind exchanges of different types of commodities that would be made between two parties, recognizing that this was a natural and just aspect of commerce. The question here lies in what is considered to be &ldquohand to hand&rdquo. In the olden days, there were of course no computers or telephones, so the aspect of making a deal face to face (or hand to hand) wasn&rsquot much of a question. In fact, one could extrapolate that it was natural and accepted for a deal to made between two different parties. In modern times, it can be argued that in regards to Forex trading, the deal is made between a Forex broker and a trader, so this would qualify under such a definition of two different parties, which would be permissible according to Islamic law. A further widely recognized stipulation is that the actual exchange must take place during the same &ldquositting&rdquo in which the contract is made - in other words, trades must be concluded more or less immediately. We would seem to be on solid ground here, as when a trade is made with a Forex broker, it takes effect immediately. Interestingly, this could suggest that all non-market trades (i. e. stop or limit orders) are haram! It is here that we arrive at the biggest hurdle in attempting to answer the question &ldquoIs Forex halal or haram?&rdquo Generally, Forex traders do not expect to take actual delivery of the currency they are &ldquobuying&rdquo, and never actually own the currency that they are &ldquoselling&rdquo. They are simply speculating that the value of one with go up and the value of another will go down. Is such speculation permissible according to Islamic law? This is an extremely difficult question to answer and it may be one that should be discussed with your own religious leader rather than being decided base on an internet article. Nevertheless, we&rsquove researched the issue thoroughly and will be outlining some points of thought below.

We can start by saying that Islam recognizes that nearly all adult human beings strive to improve their financial positions, and that life involves a large element of uncertainty. In life we are confronted with many choices, the outcome of which is unclear, and we strive to use intelligence and skill in choosing the available option that will produce the superior outcome. However, we then must go on to say that gambling is strictly forbidden by Islamic law, even as a form of recreation or entertainment when undertaken with small monies which the gambler might be said to be able to afford to lose. In measuring these two competing elements, it can be said that it is the method of speculation that makes the difference. One author has examined the subject and stated that speculation on the basis of fundamental analysis is permissible, but technical analysis is not, and an interesting reasoning is given: placing trades based on technical analysis is essentially tantamount to betting on the bets of others, and relying upon the behavior of the crowd to influence your speculation is drenched with the essence of gambling, which is forbidden by Islamic law. However, this argument can certainly be criticized as spurious as related to market realities. For example, is a speculator who believes that the U. S. Dollar will rise against his Euros due to economic fundamentals bound to simply make the trade immediately, and forbidden to take any action to time the trade entry to a psychologically opportune moment? Once you&rsquove done your research thoroughly, you can decide whether Islamic Forex is right for you. A stronger argument could be made that a Muslim has no business speculating on the currency markets unless he or she has a firm basis upon which to anticipate success. This would mean that trades must involve either some element of fundamental analysis or technical analysis which the trader actually has a firm reason to believe in. One example might be trend following trends that have an academically established track record as a profitable trading method in liquid financial markets, and trading these trends using Islamic FX Brokers.

A trader could argue that a strong technical trend is easier to establish &ndash and is also likely to have an underlying (if invisible) &ldquofundamental&rdquo reason behind it - than a classical fundamental economic outlook which might be disputed by professional economists! Creating a Muslim Forex Account. There is no question that currency exchange is permissible in Islam, provided that there is no interest element, that it is made hand to hand (though this phrase can be translated in multiple ways), and that the exchanger has a valid reason to anticipate a probable profit based upon an analysis that does not rely upon the psychology of gambling. On a minimal basis, Islamic Forex brokers can be used to trade, which should at least remove arguably all of the riba challenges. As we have seen, there are certain grey areas within this qualification that must be investigated deeply in good faith and conscience by anyone wishing to begin halal Forex trading with a Muslim Forex account. It should be stressed that though we&rsquove researched the issue of Islamic Forex and its validity within Islamic law at length, we are in no way attempting to provide religious guidance for readers of this article or their acquaintances. As evidenced in the research presented here, there are certainly many people who believe that in the right circumstances, Islamic Forex trading is permissible. However, there may be some that aren&rsquot comfortable using these workarounds, and this is a completely valid approach as well. If you are interested in researching more on the issue or considering how each Forex broker implements their Islamic Forex system, we recommend that you evaluate our top Islamic Forex brokers and speak to their teams if you have any questions or concerns about how their practices relate to Islamic law. A solid and respectable Forex broker will have concrete answers and will make you feel at ease, not uncomfortable. The DailyForex. com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say. Free Forex Trading Courses. Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Most Visited Forex Broker Reviews. Also Available on. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page.

While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Binary options trading wiki halal or haram Get via App Store Read this post in our app! Is Binary Option from an Islamic account (No riba and swap-free) halal or haram? lately I discovered the Binary Option system, with a little bit of research I found companies who offer an Islamic Account to trade. However when I searched on the internet to find if this kind of trades is Halal or Haram, I found myself stuck between two opinions, some say that it is halal if you avoid trading in currencies, you trade just in commodities (gold, silver, oil), stocks (Facebook, Amazon, Apple) and indices, and some say that it is Haram. The problem is that no one is talking about the Islamic account itself, whether it makes any difference or not. Some sites that offer an Islamic account: Could anyone please help me with this? The problem with Binary options(also options and futures) is that you don't directly deal with the underlying item. You never become the owner of the underlying item. Instead you are betting on the way the underlying item's price moves. If you predict the movement correctly you get money and if you predict wrong you lose money.

So I think it is pure gambling. Binary option is not Haram essentially. I don't know how much you have studied this system, but please note that in this system 30 percent of the people will get rich and about 70 percent will lose. From any side you look at these binaries you can find out this. This kind of trading is not Halal because of what I mentioned. In my country, Ulamas have forbidden this kind of trading. Well, i think binary options IS gambling, there's a thin line between binary options and forex trading (gambling and trading) binary options are about betting and forex trading is about selling and buying currencies. Binary options : is betting wethere bulling or bearing Forex trading: is buying and selling currencies with the hope that you earn money As i mentioned above, if we talk about fundamentals about trading, there's a very thin thin difference between betting and trading. In simple and common trading (such as trading or buying food) the wholesale sellers try to take profit of the market volatility so they try to "predict" proces. But betting you know is to bet is giving money without buying something I consider binary options like betting for football .. The fundamental difference between betting and trading is almost same between business and ribah (in quran' they said ribahis business, allah said NO) Therefore i consoder binary options haram (not fatua) and to prevent doing things haram i prefer avoid dealing with subjects still in discussion until a real FINAL result or fatua is released Ua allahu aalam Assalami alaikom. It is interesting to note that claims of 100% are made by those who can not justify it. It is my understanding that for a method to be gambling a stake has to be made which has risk to be lost. In binary trading it is gain or no change ie zero gain nothing is being lost therefore not gambling in Islam therefore halal.

Non Muslims such as HMRC, for tax purposes, classify it as gambling based on behaviour not the exact detail. Al hamdu Lellah wa asalatu wasalam ala raoulelah, in my view, as for all muslims Buying and Selling is NOT haram, But Al Riba is haram (as the Quran says). So in my points here I will never Change Haram thing to halal. nor vice versa. I will simplify my answer in to points : What you buy you should be able to touch or hold in your hand or be in your AC To Buy Stocks.. it's a tangible item. to buy Gold it's Tangible. any commodity will be tangible ! So you GOT to touch it, in order to own it. Trading in commodities or Stocks are not allowed (Haram) bcz you cannot hold it, then you sell it . it's not possible - you just don't even see it . Trading in Currencies is Halal and allowed in islam, because you can see it coming in to your AC and stored there, you can withdraw it anytime and touch it or hold it 100%. Because it's currency of other countries same as exchange outlets which is spread over the islamic world and halal 100%. Second to point 4, the give and take or sell and buy is done on the same session (same time when the trade ends, it's in your balance instantly) and this balance BELONGS only to you, you can withdraw anytime. Islamic AC should be Free of the following : A. Interests on Trades. B. Swap interests on overnight trades (Rollover).

C. Deposit Bonus (Which is added without sense) Ribah. D. No Deposit Bonus (Which is added without need to deposit usually). E. Hidden Fees you don't realize. F. Leverage (the riser of funds as loan from Banks to your AC) If you have your ac islamic means free of the above, Provided that you Trade ONLY in Currencies exchange, means it will be Halal to practice. Wallahu A'Alam. Another point: Binary options or Forex Trading are NOT Gambling, why ? Because gambling has 3 conditions: 1. Pay for something symbolic like Marks to play with (literally something without any value). 2. Get your Play or cards flip or Roulette Turn. 3. Get a Prize for your play (determined by the Casino) But in Trading . you are Buying an item or Currency of REAL Value. Opening a position (Selling it or Buying it with a real contract) and winning sale price on the spot after sale and it's in your AC. so it's totally different and Halal. Wallahu A'Alam.

There is so many stories about betting in Islam about different stuffs but not for trading and betting is gambling but in religions the messengers always has predicted about thing to happening so what is that , in my opinion when you deposit some amount to investment as a business and when you think the line will go there that you see predictly so if you profit its the way you and all the members hidden betting for so halal is the clean result so its halal a method is the way that you will be agree for lose or win basically its a systematic trade its not the poker or killing someone for their pocket money its a nice live trade for stocks wars and we should know that life is balanced by the wars of stocks and in this case god will thank you that if you invest some money for a reason that it balancing the stocks and the human life system going forward normally so you can trade in law binary options are allowed in professional countries you can be a millionaire and enjoy if you are Islam for the humanity. It's 100% halal! Is Binary Option trading allowed in Islam? As Salaam Alaykum Wa Rahmatullah, My deep respect to all members of the Eshaykh staff. I would like to know whether binary option trading is allowed in Islam. It is a type of trading where the trader purchases an item (currencies, commodities, etc.), if he thinks that the price of the given item will be higher than the current price and where he sells the item if he thinks that that the item’s price will be lower of the current price. If the trader is successful in his transaction, he receives a percentage profit and if he is unsuccessful he receives nothing. Thank you in advance for your enlightened viewpoint. wa `alaykum salam wa rahmatullahi wa barakatuh, By explaining what is “ gharar ” in Islamic law and you will conclude for yourself whether binary option is halal or Haram . In this kind of trade there is uncertainty – either you get a lot of profit or nothing at all.

This is “ gharar ” which is risky or hazardous sale where details of the sale commodities are unknown. Gharar is generally prohibited being excessively risky. Multimedia. How often do you recite Quran? Root > Fiqh of Transactions and Inheritance > Rulings on Gambling, Betting and Playing Games of Chance. Binary options contracts are prohibited in Islam. Fatwa Date : Rabee' Al-Awwal 22, 1435 23-1-2014. My question is about binary options, where one predicts if the currency pair, commodity, indecies, etc will go up or down and you invest a certain amount of money on your prediction, if it is correct when the time of the option expires, you get a fixed return, if not then you don't getting anything at all or with some brokers you can cancel the trade before the expiry if you think your prediction is not going to be correct so you get some return of your money depending on how far you are wrong or right. A number of brokers of islamic accounts especially for muslims so no riba. Is this halal? I would like to add that currently i'm living on haram money and my husband is unable to get a job which is halal and enough for our living in this foreign country because of his lack of skills, qualifications and not being able to speak english. We really want to move to bangladesh to avoid the fitna in this country, especially if Allah azzawajal blesses us with children but because we don't have enough money for even the flight we are unable to do this.

His income is very low, if he was unable to go to work for a week, after we pay rent and send money to support family in bangladesh, we would struggle for food. All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His Slave and Messenger. Binary options contracts are prohibited and it is not permissible to deal in them. The decision of the International Islamic Fiqh Academy No. 63, 17 reads: " Binary options contracts are not permissible in Islam, because the subject of the contract is neither money, nor a benefit, nor a financial right that is permissible to compensate the same thing applies to futures contracts contracts by which one buys the right to sell or buy in the future by paying a given amount and the contract on the index. " Dr. Saalimi As-Suwaylim says: " The stock exchange options traded on global markets, whether they are purchase options (call options) or sell options (put options) are among the aleatory contracts which are Islamically forbidden. The resolution of the Islamic Fiqh Academy in Jeddah in 1992, number 63, decided the same thing." What made these contracts to be among aleatory contracts is that their function is subject to the change of price, as they do not allow both parties of the contract to profit. For example, in the purchase option, the buyer pays a certain amount (premium) so that he has the right to buy stock or stocks at a fixed price throughout the duration of the option, then if the price of the market for these shares goes up when they are due, the buyer implements the sale and gains the difference between the market price and the implementation price (strike price). It is the same for the put option, as the owner of the shares pays a specific amount in return for him having the right to sell the shares at a fixed price throughout the duration of the contract. If the price of the market goes down at the time when it is due then the owner executes the sale, and so, he gains the difference between the market price and the strike price.

Of course, this profit in itself represents a loss to the other party, because if the direction of change in price information is known in advance, the contract would not have been concluded, because it constitutes a real loss for one of the two parties. Therefore, the options are means of taking risk on prices. They are among the contracts that made the French economist Maurice Allais describe the global stock markets as huge gambling casinos. This is so because gambling is in fact that one of the two parties wins at the expense of the other this is exactly what happens in binary contracts in international markets. This is contrary to ordinary transactions of buying and selling shares which do not involve an Islamic prohibition, because the sales contract is an immediate contract that ends as soon as the deal is concluded, and each party has full freedom to act after the contract, without any obligation of one party to the other. But as to a binary contract, it is a delayed contract whereby one party is bound to the other by bearing the risks of the price throughout the duration of choice. The contract is in reality that the origin of the option offers a commitment or guarantee to the other party for the implementation of the contract at the agreed price, so it is a contract of compensation on a guarantee of the price. It is for this reason that the option is considered among the insurance contracts in reality, as it is used for insurance in investment portfolios (portfolio insurance), and it is known that commercial insurance is an aleatory contract according to the agreement of all Fiqh academies, and the reason is the one in both cases, Allaah Knows best. ” Dear sister, the means of lawful earning are abundant for whoever wishes to seek them Allaah says (what means): And whoever fears Allaah—He will make for him a way out. And will provide for him from where he does not expect. And whoever relies upon Allaah — then He is sufficient for him. >Quran 65:2-3 Besides, the Prophet said: " The Holy Spirit (Jibreel) has inspired to me that no soul will die until it has received its provision in full, so fear Allaah and be moderate in seeking provision, and no one of you should be tempted to seek provision by means of committing sin if it is slow in coming to him, for that which is with Allaah can only be attained by obeying Him. ” Ibn Marduwayh - Al-Albaani graded it Saheeh (sound) Therefore, you and your husband should seek lawful earnings as it is forbidden to consume ill-gotten money unless one finds himselfherself in case of dire necessity Allaah says (what means): ….

while He has explained in detail to you what He has forbidden you, excepting that to which you are compelled. >Quran 6:119 The necessity which renders what is forbidden permissible is when one reaches a point that if he does not consume what is forbidden he will die or nearly die or face an unbearable difficulty that cannot be borne except with great difficulty which cannot be repelled except by consuming what is forbidden and the necessity is measured in accordance with its true proportions. For more benefit on the necessity which makes what is forbidden permissible, please refer to Fataawa 90514 and 91257. Halal Binary Options and Islamic Trading Accounts. Is Binary Options Halal and compatible with Islamic traditions? This has become an important question for prospective Muslim options traders as the financial industry has become available to everyone through online trading accounts. Here we look at the implications of Sharia Law on binary options trading and whether it is “Halal” or “Haram”. The development of online trading in the financial industry in the last two decades has opened up new horizons for retail traders of all races and creed. With one quarter of the world’s population being Muslim, it is inevitable that more and more Muslim traders will join the online Islamic binary options trading scene. In Islamic economic jurisprudence or Shariah law, charging “Riba” or interest is forbidden and is considered as a major sin. Many brokers in sensing an opportunity that will benefit them as well as their Muslim traders came up with the idea of “Halal”, or Islamic, trading accounts. Halal Binary Options Brokers in Germany. These brokers are marketing specific account types they operate as Halal and compatible with Islamic tradition and Sharia Law. Is Binary Options Halal or Haram?

The life of a Muslim is guided by Sharia Law. Sharia is actually an old Arabic word meaning “ pathway to be followed “. A Muslim is expected to abide by the Islamic principles covering all aspects of their life from social matters to economic matters that were expounded in the holy Koran. In the area of banking and investments, Sharia law strictly forbid the lending of money with interest. Investments in the Muslim world are instead governed by the concept of “risk sharing” through principles such as Bai’ al ‘inah (sale and buy-back agreement), Bai’ bithaman ajil (deferred payment sale), Bai’ muajjal (credit sale), Bai salam, Mudarabah (Profit Sharing), Murabahah and Musawamah. When Sharia law is applied to Binary options trading, this means interest that is earned or charged for an overnight position is prohibited as well. In the spot financial markets, trading is done on a 24 hours basis. By 5 pm New York time, all open market positions are then rolled over to the next 24 hours cycle. Daily interest is then added to the broker’s account. Regardless of whether the binary broker debits or credits their clients’ accounts with the interest like forex brokers, the fact that interest is earned or payable during a trading transaction makes the trade “haram” to Muslim.

This situation puts Muslim traders on a collision course with their religious beliefs. Islamic Trading Accounts. In order to overcome this dilemma, some innovative binary options brokers have come up with the idea of an Islamic trading account or “Swap Free” account that eliminates Riba of any form during trading. For example, instead of having an open market position rolled over automatically making overnight interest payable, open positions in Islamic trading accounts are closed by 5 pm New York time and then reopen immediately hence avoiding any interest payable for the fresh 24 hour cycle. For a broker to be able to claim that they offer trading accounts based on Islamic principle, these accounts must satisfy at least the following conditions: Immediate execution of trades Immediate settlement of transactional cost No interest payable on trades. To help traders in their selection of brokers that offer Islamic trading accounts, we have compiled a list of leading binary brokers that offer Islamic trading accounts. It should be noted that the list above is by no means exhaustive but is just a guide. Other considerations. If someone used a Halal binary options account, but had little or no knowledge of what or how to trade, then they would be using binary options to gamble – and this would certainly be Haram. Only the individual trader can know whether this is the case. There is also a view that because each contract or trade must have a ‘winner’ and a ‘loser’, this means that binary options cannot be Halal, as it is not possible for all parties to profit, or extract value, from the trade.

While some brokers will offer “Islamic” accounts, and take steps to ensure they are run to islamic principles, there will always be some who view the entire concept of binary options as Haram. Multimedia. How often do you recite Quran? Root > Fiqh of Transactions and Inheritance > Rulings on Gambling, Betting and Playing Games of Chance. Binary options contracts are prohibited in Islam. Fatwa Date : Rabee' Al-Awwal 22, 1435 23-1-2014. My question is about binary options, where one predicts if the currency pair, commodity, indecies, etc will go up or down and you invest a certain amount of money on your prediction, if it is correct when the time of the option expires, you get a fixed return, if not then you don't getting anything at all or with some brokers you can cancel the trade before the expiry if you think your prediction is not going to be correct so you get some return of your money depending on how far you are wrong or right. A number of brokers of islamic accounts especially for muslims so no riba. Is this halal? I would like to add that currently i'm living on haram money and my husband is unable to get a job which is halal and enough for our living in this foreign country because of his lack of skills, qualifications and not being able to speak english.

We really want to move to bangladesh to avoid the fitna in this country, especially if Allah azzawajal blesses us with children but because we don't have enough money for even the flight we are unable to do this. His income is very low, if he was unable to go to work for a week, after we pay rent and send money to support family in bangladesh, we would struggle for food. All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His Slave and Messenger. Binary options contracts are prohibited and it is not permissible to deal in them. The decision of the International Islamic Fiqh Academy No. 63, 17 reads: " Binary options contracts are not permissible in Islam, because the subject of the contract is neither money, nor a benefit, nor a financial right that is permissible to compensate the same thing applies to futures contracts contracts by which one buys the right to sell or buy in the future by paying a given amount and the contract on the index. " Dr. Saalimi As-Suwaylim says: " The stock exchange options traded on global markets, whether they are purchase options (call options) or sell options (put options) are among the aleatory contracts which are Islamically forbidden. The resolution of the Islamic Fiqh Academy in Jeddah in 1992, number 63, decided the same thing." What made these contracts to be among aleatory contracts is that their function is subject to the change of price, as they do not allow both parties of the contract to profit. For example, in the purchase option, the buyer pays a certain amount (premium) so that he has the right to buy stock or stocks at a fixed price throughout the duration of the option, then if the price of the market for these shares goes up when they are due, the buyer implements the sale and gains the difference between the market price and the implementation price (strike price). It is the same for the put option, as the owner of the shares pays a specific amount in return for him having the right to sell the shares at a fixed price throughout the duration of the contract.

If the price of the market goes down at the time when it is due then the owner executes the sale, and so, he gains the difference between the market price and the strike price. Of course, this profit in itself represents a loss to the other party, because if the direction of change in price information is known in advance, the contract would not have been concluded, because it constitutes a real loss for one of the two parties. Therefore, the options are means of taking risk on prices. They are among the contracts that made the French economist Maurice Allais describe the global stock markets as huge gambling casinos. This is so because gambling is in fact that one of the two parties wins at the expense of the other this is exactly what happens in binary contracts in international markets. This is contrary to ordinary transactions of buying and selling shares which do not involve an Islamic prohibition, because the sales contract is an immediate contract that ends as soon as the deal is concluded, and each party has full freedom to act after the contract, without any obligation of one party to the other. But as to a binary contract, it is a delayed contract whereby one party is bound to the other by bearing the risks of the price throughout the duration of choice. The contract is in reality that the origin of the option offers a commitment or guarantee to the other party for the implementation of the contract at the agreed price, so it is a contract of compensation on a guarantee of the price. It is for this reason that the option is considered among the insurance contracts in reality, as it is used for insurance in investment portfolios (portfolio insurance), and it is known that commercial insurance is an aleatory contract according to the agreement of all Fiqh academies, and the reason is the one in both cases, Allaah Knows best. ” Dear sister, the means of lawful earning are abundant for whoever wishes to seek them Allaah says (what means): And whoever fears Allaah—He will make for him a way out. And will provide for him from where he does not expect. And whoever relies upon Allaah — then He is sufficient for him.

>Quran 65:2-3 Besides, the Prophet said: " The Holy Spirit (Jibreel) has inspired to me that no soul will die until it has received its provision in full, so fear Allaah and be moderate in seeking provision, and no one of you should be tempted to seek provision by means of committing sin if it is slow in coming to him, for that which is with Allaah can only be attained by obeying Him. ” Ibn Marduwayh - Al-Albaani graded it Saheeh (sound) Therefore, you and your husband should seek lawful earnings as it is forbidden to consume ill-gotten money unless one finds himselfherself in case of dire necessity Allaah says (what means): ….while He has explained in detail to you what He has forbidden you, excepting that to which you are compelled. >Quran 6:119 The necessity which renders what is forbidden permissible is when one reaches a point that if he does not consume what is forbidden he will die or nearly die or face an unbearable difficulty that cannot be borne except with great difficulty which cannot be repelled except by consuming what is forbidden and the necessity is measured in accordance with its true proportions. For more benefit on the necessity which makes what is forbidden permissible, please refer to Fataawa 90514 and 91257. Islamic Accounts in Binary Options. Binary options trading has taken root as one of the fastest growing sectors of assets and commodities trading. Thousands are already into it and thousands more are coming in. There are hundreds of brokers and trading platforms in business today and these are also increasing. When this trading began, one vital group was left out the Muslim trader. For centuries, traders of the Muslim faith have crossed oceans and vast lands to trade. This tradition continues up to this day. However, Muslim traders follow different methods in business to the conventional methods that everybody else practices.

Their methods are dictated by the teachings of their faith and they are to a great extent followed. When binary options trading took root, some players discovered that there was a void and introduced special accounts that catered for traders of the Islamic faith who were interested in forex trading. The main characteristic of these types of accounts is they are interest free accounts. This is because it is considered haram, or ungodly to trade where interest is being charged and earned. More platforms are waking up to this idea, especially considering that Muslims constitute about 23% of the global population, which translates to about one in every 5 people. This is a very large chunk of the world’s population and they should not be left out of any business if it can be configured to fit their faith based trading rules. How Binary Option Robot Can Change Your Life? Check This Out! For centuries, traders of Muslim faith have crossed vast lands to trade, so it is obvious that there are many Muslims who wish to trade binary options. How to Make Money with Binary Option Robot. Top Binary Option Robots in Germany. Claim your free binary option robot, get started with three easy steps: Name of Robot Min. Investment Min. Deposit Rating.

1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time. 2. The Binary Option Robot Will Predict the Price Movement. Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall. 3. Decide on how much you want to Invest. Then you need to decide how much you want to invest in the commodity and when that investment will expire. 4. Collect your Earnings. Finally, you collect your earnings (the good part!) Open an Islamic Account with Option Robot by clicking on the button below. Islamic trading accounts: What you need to know. Basically, an Islamic account in binary options is one that operates much like an ordinary account only that in this case, no interest is charged whatsoever. The account should not earn interest of any kind either. The reason for this is that Sharia, or Islamic law expressly proscribes the earning or charging of interest in business practice or in any situation in life. Muslims are taught to give because it is the right thing to do and not to give so that gain can be made out of it. This is actually the root of the creation of Islamic accounts in binary options.

The situation though is not that straight forward, as debate is still ongoing, as religious debates are wont to about what is halal (allowed) and what is haram (forbidden) in forex and binary options trading. There is a general unwritten agreement on what constitutes a halal account and that is what is generally practiced. For a binary options account to be declared halal, it must satisfy the following conditions: Trading is instant, delays are not acceptable. The proceeds in monetary terms must be transferred to the respective accounts as soon as any forex transaction is completed. All transaction proceeds are transferred as a full amount, payment in parts is not allowed for these accounts. All trading is done without either party earning or charging the other any interest. The account you are trading with is operated by halal binary options brokers. This is to ensure they do not do any business that involves aspects of betting or chance with your investment. You will be trading within Islamic law if you exercise self-control. This means that you need to refrain from trading if you are driven by a desire to recover lost trades. if your method is solely dependent on observation and study of economic and financial indicators. if you do not keep the knowledge of your trading from your family or anybody else who might be interested. Risk-free trades and bonuses are to be avoided in Islamic binary options accounts. This is because they could be viewed as inducements to trade more than was originally planned which Islamic law might construe as being influenced by greed.

Trading in binary options can be considered as flouting Islamic law under certain conditions: Islamic law expressly forbids trading when driven by greed or any other compelling force. So, your trading of binary options must be done with all your emotions in check and with your conscience clear and with your trading borne of good intentions. Trading in private and intentionally shielding the fact from your family, is not halal. You will also be flouting the law if you do not let your family know about your earnings and any money you spend on binary options. Trading because you are addicted is considered haram, as is every other form of addiction. This is what is meant when you are told that you should be fully in charge of your emotions when trading. If you are trading to recover investments lost earlier, you will be going against the Sharia. Trading to recover prior losses can be compulsive and you will not be fully on control of your emotions. What you need to do is trade with good intentions such as earning an income. You should not borrow money to trade in binary options. This means that you can only trade with funds that are already in your possession. This will keep you from falling into debt. Trading with non-halal brokers is proscribed.

If you trade with brokers who operate betting related transactions or businesses, you will be flouting Islamic law. Islamic binary options accounts today. All accounts are Sharia compliant (the no ‘Riba’ protocol). All charges and earnings are clear and devoid of any extra charges. Trading is with assets available to other traders. They provide trades that close at midnight. Most business transactions among Muslims follow two main principles which can be applied to all forms of halal businesses including trading in binary options. These principles are: 1. The Mudharabah Arrangement: This principal is applied when two traders join hands in a joint venture. It applies the principle that the investment is a collective effort. It follows therefore that all profits are shared equally and all loses are borne together. This means that neither is benefitting on the back of another. This arrangement means that an Islamic trader will not have to borrow from another and pay him off with the profit, or be left indebted to him.

In this method, no Sharia law is broken and it is all halal. 2. The Musharakah Arrangement: This arrangement is quite similar to the Mudharabah Arrangement in terms of the joint venture agreement. The difference here is that a trader will enter into an agreement to trade together with a bank as a joint venture. What happens is that the gains from the trading will be shared according to each party’s contribution to the initial capital. The profit margins are clear as they are agreed upon before the trading takes place. The influence of Sharia law in the binary options trade is a welcome relief to thousands of traders of deep Islamic faith who had been locked out of binary options. Today, all they need to do is sign up to the halal binary options brokers and they are ready to trade. All principles are basically the same, save for the small tweaks made to accommodate Muslims. Selecting your broker. Just like in conventional binary options trading, the rate of return on your investments will to a large extent be dependent on the broker who is handling your trades. This is because a bad broker is a bad broker and it does not matter if he is halal or not. Just because he is referred to as halal does not mean that you should entrust him with your investment blindly.

The best thing is to make a detailed study of his practices and reputation before making your decision. Too many red flags and you move on to another one. Eventually you will find a good and reputable halal broker who will help you make an income from binary options trading. Good platforms are out there. Do your due diligence and you will be able to trade in binary options just like every other trader. Islamic banking opened the way for Islamic accounts in binary options. This seems to be the trend and should there be more developments in the commodities, currencies, stocks and indices trade, the Islamic aspect will keep up with them and Muslims will always have a platform to trade in future. For now, most Muslim traders are fine and comfortable with the current arrangement, and with their vast resources the benefit will spread to all the markets. Open an Islamic Account with Option Robot by clicking on the button below. IQ Option ( Best binary options broker site) Copyop ( Copy the best traders for free) Binary Options Signals (Make money by using these best signal services) Mike’s Auto Trader ( Michael Freeman shares his knowledge for free) Best Binary Options Brokers ( Best brokers for each region) Binary Option Robot Review and Scam Investigation ( Learn to avoid trading scams) Check out these top rated articles!

Los Mejores Robots de Opciones Binarias ( Español) Roboter für Binäre Optionen ( Deutsch) Meilleurs Robots sur Options Binaires ( Français) I Migliori Robot per Opzioni Binarie ( Italiano) Melhores Robôs de Opções Binárias ( Português do Brazil) References and Further Reading. Author: Michael Allen. Michael Allen is the main author at binaryoptionrobotinfo. com. He holds a PhD in Economics and has worked in investment banking for 24 years. Recommended Free Binary Option Auto Traders. Get the best binary option robot - Option Robot - for free by clicking on the button below. Our exclusive offer: Free demo account! See how profitable the Option Robot is before investing with real money! Average Return Rate: Over 90% in our test US Customers: Accepted Compatible Broker Sites: 16 different brokers Price: Free. The best new auto trading software: Automated Binary. Get it now for free by clicking the button below and start making money while you sleep! Average Return Rate: Around 80% in our test US Customers: Accepted Compatible Broker Sites: 11 different brokers Price: Free.

The best new auto trading software: Automated Binary. Get it now for free by clicking the button below and start making money while you sleep!! Average Return Rate: Little over 80% in our test US Customers: Not Accepted Compatible Broker Sites: 12 different brokers Price: Free. Put your trades to copy the best traders of the world and earn money without doing much work. Groundbreaking software, which you can get freely by clicking on the button below. Average Return Rate: Depends on the trader you choose to copy US Customers: Not Accepted Compatible Broker Sites: Anyoption Price: Free. One of the best auto traders, which you can get completely free of charge by clicking on the button below. Average Return Rate: Well over 70% in our test US Customers: Accepted Compatible Broker Sites: Many reputable broker sites Price: Free. Michael Allen. Michael Allen is the main author at binaryoptionrobotinfo. com. He holds a PhD in Economics and has worked in investment banking for 24 years. Islamic binary options trading seems to be a promising thing in the binary options trading industry.

This is an entirely new concept that I have come across until now. Through this article, I learnt a lot of new facts about Islamic binary options trading. Right from the different types of Islamic binary options accounts to the necessary requirements for opening an account in the same – you can learn all about it in this article. For those who might be interested in the same, they can definitely try out the Islamic binary options trading accounts. Islamic binary options trading accounts can be really profitable to those who are willing to invest money in the same. Learn about the same through this article. Go through this one and learn about this latest binary trading option now! There are various types of binary options accounts in the current market today. I think it is a great thing to write about Islamic binary options trading industry and the possible options out there. Michael, can you also deliver articles about other alternatives of binary options trading industry? I would love to read about them as well. This is a great informative article about Islamic binary options trading accounts and how you can do binary trading through the same. Great one!

There are various alternatives of doing binary options trading. However, the concept of Islamic binary options trading was completely new to me. I had not read about it before. It is a great piece of information for several traders out there. There might be several traders who would be interested in the Islamic binary options trading system. It is great that Michael wrote about it such that the interested traders can learn more about this system. Great one! Islamic binary options trading is a new concept of binary trading that I came across recently. I had not known of such a thing in the binary options trading industry before. As such, this article about Islamic binary options trading unveils much of the vital information about this form of binary trading. The traders who find interest in this can read the article to know more about different Islamic binary options trading accounts. This can be really useful to a lot of traders out there.

Thanks Michael for sharing this article. I appreciate your efforts into this article! It is for the first time that I came to know about anything such as Islamic binary options trading. It can be a great thing for several binary traders out there who must have been looking for some options to make more money. If you are an avid binary trader, then you can also learn about this new form of binary options trading which can yield higher profits for you. There are several kinds of Islamic binary options trading accounts. You can learn about these and choose the best amongst these to do your trading. All the best! I never knew anything like Islamic binary options. A great article indeed! It is always nice to learn new things about binary options trading industry. Islamic accounts in binary options trading can be a great option for several global traders out there.

You can learn about the general prerequisites of Islamic binary options trading and start trading with the most reliable broker. There are several options of Islamic accounts in binary options trading. Look out for the best one for yourself and invest your money there. Great one! Islamic binary options trading can be a highly lucrative option to start binary trading with. However, if you are even a single bit skeptical about it, then try out Option Robot. There is no point of having any second thoughts when you are trading with Option Robot. This is definitely one of the best and the most reliable binary options trading platforms out there. Though Islamic binary options trading seems to be a reliable solution, I will still like to go with Option Robot only. I would suggest all to go with the trading option of their choice! Good luck! Thinking of making investments in Islamic Accounts in binary options trading industry?

All your doubts about Islamic binary options trading is vanished with this article. You can learn about a lot of things about Islamic accounts in binary options trading through this article. You can also learn about the successful Islamic binary options accounts that are operational in the current scenario. You can read about them and consider investing your money into the same. Michael also tells about the successful ways of selecting your broker in an Islamic binary options trading scenario and thus, gaining maximum profits out of the same. Have a great time trading! I have been following your articles for quite a time now Michael. You are really helpful as you always come up with interesting and informative articles about the binary options trading industry every now and then. I would like to thank you as you changed my life. I started investing in Option Robot after your review of the same and now, I am able to earn a substantial amount by sitting at home. Thank you so much! I was reading this highly informative article about the Islamic accounts in binary options trading industry and I came to know a lot of things about the same.

l has done here a great job by explaining everything about Islamic Trading accounts that you would need to know. He also unveils some of the basic necessities you need to fulfill to declare halal as a reliable binary options trading account. You can read this article to know all about the Islamic Trading Accounts and how they function. Hey, I am from Asia. I just wanted to know that will it be safe and effective if I start investing in the Hawala trading system now? Or should I stick to binary options trading for now? If so, then which one is the best binary options trading platform out there for me? Please answer me as I really need to start investing now. Though the Hawala trading system might have proved helpful to several traders across the world, I still feel that there is some level of unreliability and risks in this trading system. As such, I still continue investing in Option Robot – the best and the most reliable binary options trading portal that continues to deliver amazing results on my investment. Thanks Michael for the article! Thank you binaryoptionrobotinfo for this informative article. I had heard a lot about the Hawala trading system and wanted to know about the steps involved in trading with this system. Through this article, a lot of my doubts were clarified and now I can decide upon whether I should invest money in this or not. Am glad that I started following binaryoptionrobotinfo and routinely as now I have access to such useful articles at all times.

I was always intrigued by the Hawala system of trading and wanted to know more about it. Thanks to Michael who wrote this article and helped me understand the same properly. I learnt about the different conditions for starting out the Hawala trading system. I would also recommend my friends to read this blog who have been looking for similar articles. Binary option robot reviews along brokers are the best and most helpfull. Thank you for this article! I have made 500 already in two days with option robot!