Trading on the stock markets : conditions in trading stocks, options and futures

Fatawa Question

I hope this email finds you in the best of health and security. please help me finding the answer of this question. I found the following answer given by you on www.islamonline.net dated 30/12/2003. the complete url address of the page is http://www.islamonline.net/servlet/Satellite?cid=1119503543720&pagename=IslamOnli ne-English-Ask_Scholar%2FFatwaE%2FFatwaEAskTheScholar by reading this page I have concluded following things : (1) Future and option trading is not permitted in Islam (2) Spot trading of currencies ( also called forex trading) is allowed even on margin and both forms of trade i.e. buying and short selling if you buy and sell on same day or within 3 days as described by you even physical exchange of commodity was never meant. Kindly guide me whether the conclusion drawn by me are right. (3) I have also concluded that options are haram as really delivery of commodity is never meant to occur but if there is some sort of option that are deliverable in the true spirit but the buyer and seller as a practice (with mutual consent) do not exercise their option and settle the affair with net gain or loss arising because of price change...... Will it make option Halal.....? Jazak Allah

Fatwa

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Publication Date

2007-03-15

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-786638

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