{"id":241,"date":"2014-10-25T21:50:16","date_gmt":"2014-10-25T21:50:16","guid":{"rendered":"http:\/\/fatwa-tt.com\/?p=241"},"modified":"2017-11-08T14:25:26","modified_gmt":"2017-11-08T18:25:26","slug":"is-binary-trading-permissible","status":"publish","type":"post","link":"https:\/\/fatwa-tt.com\/index.php\/is-binary-trading-permissible\/","title":{"rendered":"Is binary trading permissible?"},"content":{"rendered":"

Question:<\/strong><\/p>\n

Aslm, I want to know if binary option on internet trading\u00a0broker is halal?<\/span><\/p>\n

\u00a0<\/strong><\/span><\/p>\n

Answer:<\/strong><\/span><\/p>\n

In the Name of Allah, the Most Gracious, the Most Merciful.<\/strong><\/span><\/p>\n

As-sal\u0101mu \u2018alaykum wa-rahmatull\u0101hi wa-barak\u0101tuh.<\/strong><\/span><\/p>\n

Binary options trading is an up and coming financial trading method in which there are only two possible outcomes, hence the name Binary. The premise of Binary options trading is that you, the trader, guesses if the asset will increase or decrease<\/strong> in value by the time the position expires. If you were right, you take away the profit and if not, you lose your investment minus a small percentage that remains in your account[1]<\/a>.<\/span><\/p>\n

For example, suppose you were interested in buying binary call options[2]<\/strong><\/a><\/em> for common shares of ABC company with a strike price of $50 per share and a specified binary payoff of $500. If the stock is trading above $50 when the expiration date is reached, you would receive the $500 payoff for your option contract. However, if the stock is trading below $50 per share at the expiration date, you receive nothing.[3]<\/a><\/span><\/p>\n

In this mode of dealings, one enters into a contract based on a future uncertain event. This is known in Shari\u2019ah as “Gharar<\/em>” (uncertainty).\u00a0Any trade that contains the element of Gharar (uncertainty)\u00a0is not allowed in Shari\u2019ah.<\/span><\/p>\n

Consider the Hadith,<\/span><\/p>\n

\u0642\u064e\u0627\u0644\u064e: \u00ab\u0646\u064e\u0647\u064e\u0649 \u0631\u064e\u0633\u064f\u0648\u0644\u064f \u0627\u0644\u0644\u0647\u0650 \u0635\u064e\u0644\u0651\u064e\u0649 \u0627\u0644\u0644\u0647\u064f \u0639\u064e\u0644\u064e\u064a\u0652\u0647\u0650 \u0648\u064e\u0633\u064e\u0644\u0651\u064e\u0645\u064e \u0639\u064e\u0646\u0652 \u0628\u064e\u064a\u0652\u0639\u0650 \u0627\u0644\u0652\u062d\u064e\u0635\u064e\u0627\u0629\u0650\u060c \u0648\u064e\u0639\u064e\u0646\u0652 \u0628\u064e\u064a\u0652\u0639\u0650 \u0627\u0644\u0652\u063a\u064e\u0631\u064e\u0631\u0650\u00bb<\/span><\/p>\n

Abu Huraira (Allah be pleased with him) reported that Allah’s Messenger (\ufdfa<\/strong>) forbade a transaction determined by throwing stones, and the type which involves some uncertainty.(Muslim1513)<\/span><\/p>\n

Therefore, Binary Trading options are impermissible.[4]<\/a><\/span><\/p>\n

And Allah Ta\u2019\u0101la Knows Best<\/strong><\/span><\/p>\n

Arshad Ali<\/strong><\/span><\/p>\n

https:\/\/fatwa-tt.com<\/strong><\/span><\/p>\n


\n<\/strong>Trinidad<\/strong><\/span><\/p>\n

Checked and Approved by,
\nMufti Ebrahim Desai.<\/strong><\/span><\/p>\n

[1]<\/a> http:\/\/www.dailyforex.com\/Binary-Options<\/a><\/span><\/h5>\n
\u00a0<\/span><\/h5>\n
[2]<\/a> Call Option:<\/strong>\u00a0By selecting this option, you estimate that the asset price will be higher <\/strong>than its rate when the transaction is made. If your estimation is accurate, you earn benefits instantly.<\/span><\/h5>\n
Put Option:<\/strong>\u00a0If you select this option, you are estimating that the asset price will be beneath <\/strong>its rate when the transaction is made. If your estimation is accurate, you earn benefits instantly.<\/span><\/h5>\n
\u00a0<\/span><\/h5>\n
[3]<\/a> http:\/\/www.investopedia.com\/terms\/b\/binary-option.asp<\/span><\/h5>\n
\u00a0<\/span><\/h5>\n
[4]<\/a> \u0627\u0644\u0628\u062d\u0631 \u0627\u0644\u0631\u0627\u0626\u0642 \u0634\u0631\u062d \u0643\u0646\u0632 \u0627\u0644\u062f\u0642\u0627\u0626\u0642 \u0648\u0645\u0646\u062d\u0629 \u0627\u0644\u062e\u0627\u0644\u0642 \u0648\u062a\u0643\u0645\u0644\u0629 \u0627\u0644\u0637\u0648\u0631\u064a<\/strong> (<\/strong>6<\/strong>\/ <\/strong>80<\/strong>)<\/strong><\/span><\/h5>\n
(\u0642\u064e\u0648\u0652\u0644\u064f\u0647\u064f \u0648\u064e\u0627\u0644\u0652\u062d\u064e\u0645\u0652\u0644\u0650 \u0648\u064e\u0627\u0644\u0646\u0651\u0650\u062a\u064e\u0627\u062c\u0650) \u0623\u064e\u064a\u0652 \u0644\u064e\u0627 \u064a\u064e\u062c\u064f\u0648\u0632\u064f \u0628\u064e\u064a\u0652\u0639\u064f\u0647\u064f\u0645\u064e\u0627\u060c \u0648\u064e\u0627\u0644\u0652\u062d\u064e\u0645\u0652\u0644\u064f \u0628\u0650\u0633\u064f\u0643\u064f\u0648\u0646\u0650 \u0627\u0644\u0652\u0645\u0650\u064a\u0645\u0650 \u0627\u0644\u0652\u062c\u064e\u0646\u0650\u064a\u0646\u064f\u060c \u0648\u064e\u0627\u0644\u0646\u0651\u0650\u062a\u064e\u0627\u062c\u064f \u062d\u064e\u0645\u0652\u0644\u064f \u0627\u0644\u0652\u062d\u064e\u0628\u064e\u0644\u064e\u0629\u0650\u060c \u0648\u064e\u0627\u0644\u0652\u0628\u064e\u064a\u0652\u0639\u064f \u0641\u0650\u064a\u0647\u0650\u0645\u064e\u0627 \u0628\u064e\u0627\u0637\u0650\u0644\u064c \u0644\u0650\u0646\u064e\u0647\u0652\u064a\u0650 \u0627\u0644\u0646\u0651\u064e\u0628\u0650\u064a\u0651\u0650 – \u0635\u064e\u0644\u0651\u064e\u0649 \u0627\u0644\u0644\u0651\u064e\u0647\u064f \u0639\u064e\u0644\u064e\u064a\u0652\u0647\u0650 \u0648\u064e\u0633\u064e\u0644\u0651\u064e\u0645\u064e – \u0639\u064e\u0646\u0652 \u0628\u064e\u064a\u0652\u0639\u0650 \u0627\u0644\u0652\u062d\u064e\u0628\u064e\u0644\u0650 \u0648\u064e\u062d\u064e\u0628\u064e\u0644\u0650 \u0627\u0644\u0652\u062d\u064e\u0628\u064e\u0644\u064e\u0629\u0650\u060c \u0648\u064e\u0644\u0650\u0645\u064e\u0627 \u0641\u0650\u064a\u0647\u0650 \u0645\u0650\u0646\u0652 \u0627\u0644\u0652\u063a\u064e\u0631\u064e\u0631\u0650<\/strong><\/span><\/h5>\n
\u00a0<\/strong><\/span><\/h5>\n
\u0627\u0644\u062f\u0631 \u0627\u0644\u0645\u062e\u062a\u0627\u0631 \u0648\u062d\u0627\u0634\u064a\u0629 \u0627\u0628\u0646 \u0639\u0627\u0628\u062f\u064a\u0646 (\u0631\u062f \u0627\u0644\u0645\u062d\u062a\u0627\u0631)<\/strong> (<\/strong>5<\/strong>\/ <\/strong>62<\/strong>)<\/strong><\/span><\/h5>\n
(\u0642\u0648\u0644\u0647 \u0648\u0628\u064a\u0639 \u0627\u0644\u062d\u0645\u0644) \u0628\u0633\u0643\u0648\u0646 \u0627\u0644\u0645\u064a\u0645 (\u0642\u0648\u0644\u0647 \u0648\u062c\u0632\u0645 \u0641\u064a \u0627\u0644\u0628\u062d\u0631 \u0628\u0628\u0637\u0644\u0627\u0646\u0647) \u00ab\u0644\u0646\u0647\u064a\u0647 – \u0635\u0644\u0649 \u0627\u0644\u0644\u0647 \u0639\u0644\u064a\u0647 \u0648\u0633\u0644\u0645 – \u0639\u0646 \u0627\u0644\u0645\u0636\u0627\u0645\u064a\u0646 \u0648\u0627\u0644\u0645\u0644\u0627\u0642\u064a\u062d \u0648\u062d\u0628\u0644 \u0627\u0644\u062d\u0628\u0644\u0629\u00bb \u060c \u0648\u0644\u0645\u0627 \u0641\u064a\u0647 \u0645\u0646 \u0627\u0644\u063a\u0631\u0631<\/strong><\/span><\/h5>\n
\u00a0<\/strong><\/span><\/h5>\n
\u0627\u0644\u0639\u0646\u0627\u064a\u0629 \u0634\u0631\u062d \u0627\u0644\u0647\u062f\u0627\u064a\u0629<\/strong> (<\/strong>9<\/strong>\/ <\/strong>108<\/strong>)<\/strong><\/span><\/h5>\n
\u0642\u064e\u0627\u0644\u064e \u0627\u0644\u0652\u0645\u064f\u063a\u0652\u0631\u0650\u0628\u064f \u0641\u0650\u064a \u0627\u0644\u0652\u062d\u064e\u062f\u0650\u064a\u062b\u0650 : ” { \u0646\u064e\u0647\u064e\u0649 \u0639\u064e\u0646\u0652 \u0628\u064e\u064a\u0652\u0639\u0650 \u0627\u0644\u0652\u063a\u064e\u0631\u064e\u0631\u0650 } : \u0648\u064e\u0647\u064f\u0648\u064e \u0627\u0644\u0652\u062e\u064e\u0637\u064e\u0631\u064f \u0627\u0644\u0651\u064e\u0630\u0650\u064a \u0644\u064e\u0627 \u064a\u064e\u062f\u0652\u0631\u0650\u064a \u0623\u064e\u064a\u064e\u0643\u064f\u0648\u0646\u064f \u0623\u064e\u0645\u0652 \u0644\u064e\u0627 \u0643\u064e\u0628\u064e\u064a\u0652\u0639\u0650 \u0627\u0644\u0633\u0651\u064e\u0645\u064e\u0643\u0650 \u0641\u0650\u064a \u0627\u0644\u0652\u0645\u064e\u0627\u0621\u0650 \u0648\u064e\u0627\u0644\u0637\u0651\u064e\u064a\u0652\u0631\u0650 \u0641\u0650\u064a \u0627\u0644\u0652\u0647\u064e\u0648\u064e\u0627\u0621\u0650<\/strong> .<\/span><\/h5>\n","protected":false},"excerpt":{"rendered":"

Question: Aslm, I want to know if binary option on internet trading\u00a0broker is halal? \u00a0 Answer: In the<\/p>\n","protected":false},"author":1,"featured_media":1601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,17],"tags":[41,85],"class_list":["post-241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contemporary-law","category-money-and-finance","tag-binary","tag-gharar"],"_links":{"self":[{"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/posts\/241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/comments?post=241"}],"version-history":[{"count":0,"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/posts\/241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/media\/1601"}],"wp:attachment":[{"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/media?parent=241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/categories?post=241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fatwa-tt.com\/index.php\/wp-json\/wp\/v2\/tags?post=241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}