Fatwa ID: 03789

Answered by: Maulana Shadman Ahmed

Question

Is option trading halal?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

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

Answer:

Option tradings are not permissible as they are based on uncertain future events (gharar) and gambling.[1] The Prophet SAW forbade transactions determined by throwing stones and transactions which involve uncertainty.[2]

Only Allah knows best

Written by Maulana Shadman Ahmed

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham