Is binary options halal and compatible with Islamic traditions?This is an important question for prospective Muslim options traders as the financial industry has now opened to everyone through online trading accounts.Here we look at the implications of the law. of Sharia in binary options trading and whether it is “Halal” or “Haram”. The development of online trading in the financial industry over the past two decades has opened up new horizons for retail traders of all nationalities and Cult With a quarter of the world’s population being Muslims, it is inevitable that more and more Muslim traders will join the Islamic online binary options trading scene in Islamic economic law or Shariah law. It is forbidden to charge “Ribba” or benefit and is considered a major sin. Many brokers, in sensing the opportunity that will benefit them as well as their Muslim traders, come up with the concept of ” Halal”
Halal Binary Options Brokers in Thailand
These brokers are market-specific account types they operate as Halal and comply with Islamic traditions and Islamic law.
Is binary options halal or haram?
The lives of Muslims are guided by Islamic law. Islam is actually an old Arabic word meaning “the path to follow“. Muslims are expected to follow Islamic principles that encompass all aspects of life. From social to economic matters described in the Holy Quran, in banking and investment, Sharia law strictly prohibits lending with interest, investment in the Muslim world is governed by the concept of “Risk sharing” through principles such as Bai ‘al’ inah (sale and repurchase agreement), Bai ‘bithaman ajil (deferred payment sale), Bai’ majajjal (credit sale), Bai salam. , Mudarabah (Profit Share), Murabahah and Musawamah
When Sharia law is applied to binary options trading, this means no interest is charged or paid for positions overnight.In spot financial markets, trades are executed within 24 hours. 5:00 PM New York time, all open market positions will be rolled over the next 24 hours, daily interest will be added to the broker’s account, whether the binary broker debits or credits their client’s account. He with interest like a forex broker, the fact that interest is earned or paid during trading transactions makes trading “haram” with Muslims. religion
Islamic Trading Account
In order to overcome this dilemma, some innovative binary options brokers have come up with the idea of an Islamic trading account or a “trade free” account that eliminates any form of Riba during trading. Open market positions with overnight interest paid automatically, open positions in Islamic trading accounts close at 5:00 PM New York time and then reopen immediately thus avoiding any interest for a fresh 24-hour cycle.
In order for a broker to be able to claim that they offer Islamic trading accounts, these accounts must meet at least the following conditions:
- Instant trading execution
- Settle costs immediately
- No interest paid for trading
To help traders in choosing a broker that offers Islamic trading accounts, we have compiled a list of the top binary brokers offering Islamic trading accounts.It should be noted that the list above is not exhaustive. But it’s just a guideline.
Other considerations
If someone uses a halal binary options account But with little or no knowledge of how to trade, they will use binary options to bet on – and this will definitely be haram. Only individual traders can know if this is the case.
There is also the view that since each contract or trade must have a ‘winner’ and a ‘loser’, this means that binary options cannot be halal as it is impossible for all parties to make a profit. or separate the value from the trade While some brokers will offer “Islamic” accounts and take steps to ensure they operate according to Islamic principles, there are some who view the whole concept of binary options as haram.
Please note that this website – binaryoptions.net – cannot take a position on whether Binary Options are truly Halal or Haram as we are not religious authorities on this matter. therefore, in fact we are unable to advise on this matter, see references below for further clarification.