Spot Trading is a Sharia-compliant trading that depends on the method of execution and the nature of the assets traded. If the trading is accompanied by recommendations, the following matters must be considered to determine whether it is halal or haram:
Spot trading ruling:
1. If the trading is in assets that are permissible according to Sharia:
Such as stocks that do not engage in forbidden activities (usury, alcohol, gambling).
Foreign exchange (Forex) provided that there is no usurious interest or delay in delivery.
Permissible goods (such as gold, silver, agricultural goods).
Ruling: It is permissible provided that the transaction is free from usury and gharar (ignorance).
2. If trading is in prohibited assets:
Such as stocks or commodities associated with illegal activities.
Cryptocurrencies that are considered suspicious or gambling-based by legitimate authorities.
Ruling: Forbidden.
Trading with recommendations:
If the recommendations are based on a project analysis:
Recommendations are based on technical or fundamental analysis, and guide investors professionally.
It does not involve deception or excessive speculation.
Ruling: It is permissible, provided that the controls of Sharia are adhered to.
If the recommendations are purely speculative:
Such as speculating on short-term price fluctuations without any real intention to invest.
If the recommendations are only aimed at making quick profits regardless of the assets traded.
Ruling: It falls under the scope of gambling and uncertainty, which is forbidden.
Additional conditions for trading eligibility:
1. Absence of usury:
Avoid accounts that offer margin interest or “overnight fees.”
2. Prompt delivery:
If you are buying and selling currencies or commodities, delivery should be immediate and there should be no delays.
3. Avoid Leverage:
Using traditional leverage is not permissible because it involves usurious interest.
advice:
Before entering into spot trading or acting on recommendations, it is best to:
Consult a Sharia scholar or specialist in Islamic financial jurisprudence.
Choosing trading platforms that offer Islamic accounts that are free of interest
