Fatwa ID: 06500

Answered by: Alimah Zakiratul Hoque

Question:

Please guide me more about forex trading

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

The forex trading that is prevalent nowadays involves trading currencies without a physical exchange.

For an exchange of currencies to be permissible, the transaction should be completed in one sitting (before separating) and one or both parties should have possession of the currency that they are selling and buying (Fiqh-al-Buyu, Vol 2, Pg 698). If these conditions are not met, the trade will be impermissible.

و من احكامه انه يجب فهي التماثل بين البدلين ان كانا من جنس واحد ، و لا تجوز فيه النسيئة ، سواء ا كانا من جنس واحد او من جنسين ، و يجب فيه التقابض في المجلس

Only Allah knows best.

Written by Alimah Zakiratul Hoque

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham