What is trading and is it halal or haram?
Trading is the exchange of one asset for another, in that buying and selling is a trade just like the trade that occurs in reality.
But the ruling is related to the markets that claim to provide trading services, whether they are halal or not.
The first rule that we must emphasize is that trading requires the realization of what is called in Sharia law “receiving the payment.”
Because Muslim (1584) (1587) narrated on the authority of Ubadah ibn al-Samit, may God be pleased with him, who said: The Messenger of God, may God bless him and grant him peace, said: “Gold for gold, silver for silver,... equal for equal, hand to hand. If these types differ, then sell them however you wish, if it is hand to hand.”
It is not reasonable to sell something imaginary that does not exist or something that you do not own or possess.
- So, by examining the current markets and how they work, we find two types:
-1- The first is spot trading or what is called immediate trading.
This type has only one logical direction, which is buying only. You buy the asset.
When you receive it and its price rises, you sell it and receive your capital and profit in return.
This is permissible and there is no dispute about it, and it is what is available in spot trading on permissible currencies.
And trading only real permissible stocks.
-2- The second is trading in financial derivatives contracts.
These markets are known for their profit.
It is in two directions, downward and upward, and once we see this on any platform, we can
Make sure first that there is no cash flow in it, because how do you receive the principal and then profit when its price drops?!
The reality of these markets, which are the Forex market based on CFDs
Futures contracts and binary options
All these markets are based on the principle of betting on the price of the asset going up or down without taking possession of it.
This is its definition, as it explicitly states that there is no exchange, so the one who enters into it is considered the original in the chart.
He investigates the news about him, then enters with the prediction he has reached, for example, that he is ascending.
Here, when he enters, he does not buy the original, but rather places an amount of money in a derivative contract bearing the name of the original.
And his price is followed by a bettor and gambler on the rise, and another professional person also analyzed the original and entered the opposite.
Here, no one bought the original, but rather entered into a gambling deal, so wherever the price ultimately goes...
One party wins and the other party must necessarily lose, and so on in all derivatives markets.
There is no real purchase of the original, and this results in the absence of the exchange of goods, which is commanded by Sharia in the authentic hadith.
Thus, the user falls into usury and also becomes involved in gambling and selling what he does not own.
If he adds leverage, he will enter into a war with God Almighty. We ask God for safety and wellness.
