Fatwa #394001 January 2018United States of America
Currency futures option
Question
As-salaamu 'alaykum.
Wanted to know that is it allowed to invest in forex currency exchange? On the website, it has multiple different answers.
if its allowed or not please provide the reasons with the proofs.
please clarify with details. it will be appreciated. JazakAllah.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The online Forex market is a very large market with many different features. Each ruling issued on our website is according to the context of the query. You did not mention which feature you wish to trade in. However, the most common online feature is currency futures option.
Currency futures option:
A currency futures option is a contract that obligates two parties to trade a particular amount of a currency pair at a predetermined price (the stated exchange rate) at some point in the future.
Futures transactions are not permissible since Shariah disallows a sale or purchase to be affected for a future date. [1]
And Allah Ta’āla Knows Best
Anas Sharieff Qasmi.
Student Darul Iftaa
Hyderabad, India.
Checked and Approved by,
Mufti Ebrahim Desai.
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[1] An introduction to Islamic finance. [Page:100]
References
- An introduction to Islamic finance. [Page:100]