She tells you “I’ll sell you an antique wooden chest next week for $350. Jual beli emas dan perak harus dilakukan dengan tunai atau kontan atau naqdan sehingga dapat terbebas dari transaksi yang bersifat riba. Sorry, he does not discusses trading on margin as permissible or impermissible in this article. There’s a relevant hadith about a man who came to rasulullah (salallahu alayhi wa sallam) and said: “People ask me to sell them things I don’t have. I would like to know if there is any trader over here who is currently, trader and who have asked some Scholars about it? Not clear yet … is hedging halal or haram? Currency market is used by what you call “real” economy. If you’re thinking about investing in Islamic finance or an Islamic nation or company, know that some types of financial market activity, such as margin trading, day trading, options, and futures, are considered gray areas in Islamic law. In options, you are actually purchasing the right to buy a stock at a future date for a fixed price (regardless of the current price in the market). His complete profile is available at https://www.linkedin.com/in/mohammed-obaidullah-a735b714?trk=hp-identity-name, Andriy Moraru Reply:October 2nd, 2017 at 10:41 am. Admin can you please tell where in the article he(Dr Obaid) highlights margin trading? I am a trader, but I am not Muslim, so I cannot give a well-informed advice here. Back to top ⬆ How to Open an Islamic Trading Account? in any other biz we buy and sell at the same time, may be we can use hedging without interest. It also forbids gambling and excessive risk. Gedas. It would be permissible insha’Allah. There's no doubt that currency trading is one of the most difficult dilemmas in Islamic jurisprudence (Faqih). I want to start forex trading.i want to know about spot,option,edging,brokerage,trade by hold. A call option is a financial contract that gives you the right, but not the obligation, to buy an asset at a certain price. Currency trading in Islam is allowed only if traders use swap-free accounts that do not pay or earn swap or interest (overnight fees interest) on any trades for Indices, Currencies, and Metals. Do you have any answers so? I have came across this website some months ago. stop order) are not binding contracts per se — they cannot be bought or sold — and are merely technical contraptions to automate trading. Normal trading is buying high and selling low; futures trading is “I’ll sell you 1000 Yen at this price, two months from today, and you pay me then.” An option to buy later at a specific price guaranteed now, which you pay for later. In order to open an Islamic Forex account, you might be asked by the broker to present a few documents, such as your ID and a document as proof of your faith. As long as there is no interest element and deals are concluded immediately with some logical reasoning … Admin, are you trader yourself? 2. Say you’re trading currencies (such as the Japanese Yen). Again, it is contrary to the Gharar principle. Our religion permits trade (buying and selling) but forbids ways of illicit profit. Islamic accounts with forex brokers are swap-free but allow hedging? How can we tackle these issues? On the one hand, it requires the simultaneous exchange of currencies, which makes it a kind of hand to hand exchange. Forex trading is one of the most debated topics under Islamic jurisprudence. Some important things have changed in Islamic Forex since this article had last been updated. One of the goals of shari’ah is to prevent thulm; and with futures, the wisdom of prohibition may be around not being able to provide what you sell — if you promise someone you’ll sell them something, and you can’t deliver, then what? If u traded with no leverage then u would need over 100k to buy 1 lot!!! It is important to add that no other Muslim fatwa institution in other countries has issued similar prohibition. If it is already understood that the basic law of every trading is legal, next step that supposed to be taken is to recognize the causes that can change that legal state to illegal one in Islam. And from this hadith, scholars derive a rule: if you are a primary producer or manufacturer of an item, you can sell it before it’s manufactured or produced. 1. the link to article is: http://myblog.hazariba.com/Islamic+Legality+of+FOREX+business. For the sake of simplification, you can consider it as a contract to buy furniture from your aunt, who buys and sells antique furniture. He holds no losses but gains regardless of your loss, that’s not Islamic. Among other things, Dr. Mohammed Obaidullah proves margin Forex trading to be legal for Muslims, as long as it doesn’t involve any Riba (unlike some other Islamic jurists who look at margin Forex trading as forbidden activity). There are ECN brokers with mini and even micro lots. My view on forex is the same , it’s not halal the issues are more then a few, RIBA is a wide topic, one issue I like to point out is, if a ecn or other broker is offering you a loan on you 10k to trade 100k and he’s charging you a fee in doing so he is in 2 parts of the contract is he not ? In order to reach a general consensus, various ordinances and fatwa’s (Islamic rulings which are issued by a universally recognized religious authority of Islam) have been issued on the matter. There is, for example on Koweit, broker which is regulated by the law of the country. 08 Jan. 2009. Because such causes are actually limited, different to the legal trading, which is unlimited in number. Sorry, but you are not correct about not “adding one IOTA of utility to the economy”. Pay me next week.” That’s what futures is. Post # 17; Quote; Nov 24, 2010 3:25am Nov 24, 2010 3:25am April 8, 2017 at 4:32 pm Open Account. I would leave that to the scholars to decide. Dalam hal berjenis riba fadl. Thanks in advance. I am in no position to give you a qualified answer, but as far as I know it should be halal as gold is traded without interest rate. Futures trading generally apply to stocks, indexes, etc. On the contrary, National Sharia Board of Indonesia had previous issued a fatwa (the link is in Indonesian) stating the legality of Forex. العربية ar. The Islamic banking and finance movement that developed in the late 20th century as part of the revival of Islamic identity sought to create an alternative to conventional banking that complied with sharia law. A call option may give me the right to buy the company at 101$ a share for the next month. To summarize: Shaykh Tawfique Chaudhry. This also makes it important for all brokers to be well acquainted with rules, obligations and procedures regarding trading, clearing and settlement. If u are trading less then 1 lot which is a 100k, u r not trading in the live market, so ur trading in a box enivorment so ur not even trading real money , like a Market maker!!! Berikut adalah prinsip-prinsip dasar mengenai trading dalam hadist dan pendapat para ulama. That is, if a person obeys the orders of the religion in all of his life, … So the issue of house builders selling houses based on blueprints? Like now a days, its very common that people invest in Euro to earn profits. However, why are futures haram? Koweit is a Muslim country right? The secular laws of the country won't prevent you from engaging in Forex trading. 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