We’re rewarding the question askers & reputations are being recalculated! Read more.

Hot answers tagged

6

Investing in the stock market is not absolutely halal or absolutely haram. It mainly depends on the company you invest in. You need to think of it as taking an ownership stake in something. For example, let's take a company like Citibank. This may be an obvious one, but they make their money almost exclusively through interest and interest related stuff. ...


4

This is a permissible transaction because the seller has some kind of contract with the distributor or manufacturer to obtain and sell that item. The prohibition is against selling items that you don't own or haven't bought yet or have no means of obtaining. Source: Class on Fiqh of Transactions.


3

A call option involves purchasing the right (but not the obligation) to purchase later an amount of stock at a fixed price. Fundamentally, this makes the transaction different from futures which are [discouraged|forbidden] because of the general prohibition against selling one obligation for another obligation (e.g. a debt for a debt). Unlike a futures ...


3

Most Islamic companies do deal with shares, so it's halal. It is haraam if the company is selling haraam products, which I doubt is your concern if you're working for the company. So, I assume you're worried if it's Riba. Riba is basically what happens when you lend someone a product at a fixed value and then request higher than the perceived value for it. ...


3

In Hanafi fiqh, there are two general principles at play here: Goods bought with the express intention of resale are considered stock-in-trade, and thus zakatable. Goods bought with the express intention of keeping and/or using it, rather than selling it, are not considered stock-in-trade, and thus not zakatable. Your confusion lies in the fact that you're ...


3

Bitcoin is a currency. You can trade any currency for any others and this is halal. The value of a currency is not fixed. The value may go up or may go down for many reasons in the view of other currencies. If you buy a currency with another one and the value of the currency that you bought raise it means that you gained profit. Some persons may not like ...


2

Islam devides items between "money" and "everything else". It was usually "physical" in nature, but nowadays it may include items like you mentioned. The important things is money can be exchanged for everything else than money. Buying money with money is essentially interest or "riba" and is strictly prohibited.


2

In general, shares or stock in a company that deals in permissible business or trading is permissible. Buy acquiring these shares you are investing your money in that company and acquiring part ownership. If the company does well, you profit. If it does badly, you sustain a loss. This is perfectly fine, and it's not riba since there is no guaranteed increase....


1

All those businesses which are interest-free, are absolutely permitted in Islam. We can say such businesses, Trade. Only those businesses which work under interest are strictly prohibited in Islam as Allah clearly mentioned in Quran Surah Al-Baqarah[2:275]: Those who consume interest cannot stand [on the Day of Resurrection] except as one stand who is being ...


1

I’ve done extensive research into regular option and binary options trading being haram or halal. The short answer after my research is: Binary Options Trading is HARAM. Why? In Binary Options trading, there is no underlying asset which is traded or dealt upon. In each deal you’re simply betting that the stock price will be above or below a certain price ...


1

Let see definition of Forex from Wikipedia: The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. If it's for trading it's permissible for Islam. Generally Muslims see Forex halal ...


1

The problem with Binary options(also options and futures) is that you don't directly deal with the underlying item. You never become the owner of the underlying item. Instead you are betting on the way the underlying item's price moves. If you predict the movement correctly you get money and if you predict wrong you lose money. So I think it is pure gambling....


1

Yes, it is allowed. Narrated Aisha: (the wife of the Prophet) Allah's Messenger (ﷺ) and Abu Bakr hired a man from the tribe of Bani-Ad-Dil as an expert guide who was a pagan (follower of the religion of the pagans of Quraish). The Prophet (ﷺ) and Abu Bakr gave him their two riding camels and took a promise from him to bring their riding camels in ...


1

In general, for a sale to be considered valid it requires an exchange of property from one party to another. However, exactly what constitutes "property" is a matter in which where is scholarly dispute. The majority opinion was that it was something upon which ownership could be claimed, and which would bring benefit to the person who owned it. As such, ...


1

Assalamualaikum. The following comment is based on what I came to understand from Islamic talks I attended in the aftermath of the SE Asia stock market collapse which as many will remember, was the playground of the speculators. There are certain rules to Islamic transaction. Sorry that I can't provide evidence from Quran and hadeeth as much of this was ...


1

It's probably halal. It's like buying/investing in goods, and waiting to sell them when they are profitable. However, the only Haram I can only see is the part where the company you invest in uses it for usery or haram products. It's practically obvious that the current economy, it's almost impossible to evade such. Everything you buy, even banks are haram. ...


1

Whilst there is no prohibition in Islam relating to investment in companies in expectation of a profit return, whilst also taking the risk of a loss, the problem arises when these shares are traded on the stock exchange, as the value of shares so traded does no longer reflect the actual worth of the company and how well it is doing in real terms, but is ...


1

I will first tackle the topic of gambling. Gambling implies there is a matter of chance, and you do not have any control over the outcome. In stocks, those who are knowledgeable, have an advantage. They are able to read financial statements, calculate rations, analyze industry wide trends and make an assessment whether a particular company will do well or ...


1

I think by the links you have provided it is clear that if you have something and your intention is not to sell it but to use it yourself, than its not for trade purpose, same as if i buy a house, and live in it, i have bought it to use it not for trading purpose, although in future i might need to sale it for some reason, but it is not my intention for now. ...


1

if interest is involved in anyway, it is not permitted in Islam The only way you can buy things and pay them off Islamically is if the retailer allows you to pay the amount back in exactly the same amount as you would have paid for it if you bought it cash. For Instance there are some clothing retailers here in South Africa that allow you to pay your goods ...


1

The difference between the buy now price and the buy now, pay later price is the interest element. Credit sales typically work by giving you the product now and the finance company lending you the money to pay for it now. You then owe the finance company the capital element ($200 in your example) as well as the interest element ($300-$200=$100 as per your ...


1

Islamic rules of Bai (Sale) apply to stock trading and modern Islamic finance allows for trading with the following conditions: The stock traded must be of a permissible business, e.g the main business should not be sale or production of wine or pork, gambling or non-Islamic banking and insurance. Day trading should not be practiced, since Islam requires ...


1

Trading constitutes of many different products. Just like a supermarket, you can buy bread, vegetables, alcohol, or pork. The main goal is to participate in halal investments and abstain from haram investments. Trading in companies that sell and create halal products such as mining, gold, oil, commodities, energy are generally accepted. Abstien from ...


1

As you know already interest is haraam, I probably don't need to provide any hadith or quranic verse to prove that. If I do need to prove this first, please let me know as it won't take long. Based on your research, I can clearly see that you think the stock market is very difficult for muslims, and you're right, it is! Based on my own research, here are ...


1

Muz has ignored the fact that the company should not be a in in dealing with haram transaction and also should not have at all (according to some scholars) or very little ( according to some scholars including Taki Usmani) interest paying debts.


Only top voted, non community-wiki answers of a minimum length are eligible