Is Forex Trading Allowed In Islam

Q: Is Forex trading allowed in Islam?

A: The Shar'ee principle in regard to business transactions is that in a situation where both exchanges are specific commodities (i.due east. both have the potential of being a sale commodity (مبيع)), and then in social club for the transaction to be valid, at least ane commutation should be received at the time of the transaction (though the other item be deferred). Nevertheless, if a specific commodity is beingness sold in exchange of an unspecific article (east.thou. an item beingness sold in exchange of money) then in order for the transaction to exist valid, at least possession of the specific article should be taken.

Every bit far every bit foreign currencies are concerned, both are regarded as unspecific commodities. Hence, both or at least i will take to be exchanged on the spot. If both are deferred, it will not exist permissible. Hence, in the case of online forex, since both exchanges are deferred, this transaction is invalid and impermissible in Islam.

Furthermore, information technology appears that this type of trading is "imaginary" and figurative, because the trader does not ain nor does he have at whatsoever time possession of the foreign currency that he is trading.

And Allah Ta'ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This respond was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta'leemuddeen, Isipingo Beach, South Africa.

Detect more answers indexed from: Muftionline.co.za

Source: https://islamqa.org/hanafi/muftionline/131135/online-forex-trading-9/

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