Option trading in islam
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. Please note that this site — binaryoptions. It appears that it might also be dependent on the skills of the individual trader, thus in reality making it impossible for us to give advice on the matter. See the references below for further clarification.
Is Binary Options Halal or Haram? 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. Since the first binary options brokers enabled online trading as far back as , the binary options trading scene has grown rapidly in size and strength.
There are now hundreds of binary brokers offering a wide range of services. The fact that this type of trade can be accessed by anyone has dramatically helped to increase its popularity. However, it has become apparent that, due to their religious beliefs, Muslims are unable to trade using the traditional binary account. Thus has led to the rise of the Islamic binary options trading account.
Muslims have always been great traders; they are known to have circumnavigated the globe and struck deals around the world. However, their culture is different from that in the western world. They have their own set of principles and will always follow the guidelines established by their religion; even in business matters. The average binary trader can earn interest by trading overnight or over the weekend when the markets are closed.
This is an important strategy and must be available to any trader. However, Muslims are forbidden from earning interest in any form; this means that a Muslim trader needs a special Islamic binary options account to ensure they do not fall foul of their religion. As awareness of this issue rises, more and more brokers are offering the ability to trade without incurring any interest charges or even earning interest.
Brokers who are offering an Islamic binary options account understand the importance of no interest being charged or even earned. This is a principle which is integral to the Muslim belief system. It is a reflection of the religious belief that giving should be done without expecting reward.
In response to this the brokers are offering accounts which operate in much the same way as the traditional accounts but which are specifically designed to avoid the scenario of interest. This is often tied in with closing trades before the end of the day or pausing them overnight.
If you wish to utilize an Islamic binary options account you will need to understand that a halal account is one which is allowable under the Muslim guidelines, whilst a haram account is forbidden. A Halal account needs to operate on an instant basis; there can never be a delay which provides the opportunity to earn interest. This payment is called late payment interest officially but actually it is not regarded as interest. That is, the customer is free to choose it.
If he buys it in cash, they do not charge any extra money but if he buys it on credit, they charge some extra money. That extra money is regarded as late charge late interest and it is permissible.
However, it is necessary to state that the judgments that fiqh scholars give about the permissibility of late payment interest do not recommend charging late payment interest. It is a judgment originating from the necessities of trade life. As a matter of fact, it is a permission. That is, a Muslim can sell his goods on deferred payment adding an extra amount to the price.
However, if he sells goods to poor customers on deferred payment without adding an extra amount, it is definitely a praiseworthy act. It can even be said that with such a sale, he gets reward as if he lent money to his customer without interest qard hasan. The reward of it is mentioned several times both in the Quran and in the hadiths; and Muslims are advised to do it. Therefore, it is a good and praiseworthy act for Muslims to help each other with the feelings of mutual love, affection and fraternity whenever possible and for the rich to help the poor as much as they can.
Skip to main content. Log in Create new account Random Question. I want to ask a question. Future and Options Trading. Details of the Question. FAQ in the category of Halals - Harams. In order to make a comment, please login or register. There are so many banks that claim to be "Islamic", that is "Interest Free" banking. Could you explain please which banks are preferable?