{"id":27283,"date":"2023-02-14T21:00:16","date_gmt":"2023-02-14T21:00:16","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/home\/?p=27283"},"modified":"2023-02-14T21:00:16","modified_gmt":"2023-02-14T21:00:16","slug":"is-forex-trading-permissible","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/is-forex-trading-permissible\/","title":{"rendered":"Is Forex Trading Permissible?"},"content":{"rendered":"

Fatwa ID: 06508<\/strong><\/span><\/p>\n

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Answered by: Maulana Y\u016bsuf Bad\u0101t<\/strong><\/span><\/p>\n

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Question:<\/u><\/strong><\/span><\/p>\n

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Is forex trading permissible?<\/span><\/p>\n

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In the name of Allah, the Most Gracious, the Most Merciful<\/strong><\/u><\/span><\/p>\n

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Answer:<\/strong><\/u><\/span><\/p>\n

\u00a0<\/strong><\/span><\/p>\n

If by forex you refer to the exchange of currencies then this is permissible with two primary foundational conditions:<\/span><\/p>\n

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    \n
  1. Taking possession of the currencies (such as gold and silver) on the spot, at the time of the transaction before separating. At least one party must take possession. If both parties agree to defer payment for each other, the transaction is Islamically unlawful.<\/span><\/li>\n<\/ol>\n

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      \n
    1. The currencies (commodities) that are being exchanged should be different on both sides. Trading or exchanging the same currency with a disparity of an amount for one party is Islamically prohibited, as this constitutes rib\u0101<\/em> (usury).<\/span><\/li>\n<\/ol>\n

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      It should be noted that the notes (bills) of currency of one country compared to another (such as Canadian and American dollars), and exchanging them is permissible with only the condition that at least one party takes possession of the exchanged currency on the spot of the transaction prior to separating.<\/span><\/p>\n

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      In a specific country exchanging a cheque (document) for money as well as exchanging notes of currency for loose change of the same country is permissible provided there is no disparity in amount for one party. In this situation, there is no requirement for taking possession on the spot. \u2013 (See: Rad Al-Mu\u1e25t\u0101r, Vol 5, Page 175, D\u0101r Al-Fikr1<\/sup>, Al-Iqti\u1e63\u0101d Al-Isl\u0101m\u012by Al-Ma\u2019ahad Al-Urub\u012by Page 35)2<\/sup><\/span><\/p>\n

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      If you refer to the global forex trade where innocent traders are defrauded with a [false] promise of expecting lucrative high profits in the foreign exchange market, then this is impermissible as it results in substantial loss of wealth and deceptive fraudulent activities.<\/span><\/p>\n

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      \u201cAll\u0101h has permitted trade and has forbidden interest.\u201d \u2013 (Qur\u2019\u0101n 2:275)3<\/sup><\/span><\/p>\n

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      \u201cAll\u0101h’s Messenger (peace and blessings be upon him<\/em>) forbade the sale of gold for gold, and silver for silver except that it be equal for equal [in amount], and commanded us to buy silver for gold as we desired [in disparity] and buy gold for silver as we desired. A person asked him [about the nature of payment], whereupon he said, \u201cIt is to be made on the spot. This is what I heard [from All\u0101h\u2019s Messenger (peace and blessings be upon him<\/em>)].\u201d – (\u1e62a\u1e25\u012b\u1e25 Muslim 1590)4<\/sup><\/span><\/p>\n

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      \u201cDates can be exchanged for dates, wheat for wheat, barley for barley, salt for salt, like for the like. Payment [must] be made on the spot. He who made an addition or demanded an additional amount [on one side of the transaction], in fact, has dealt in usury except in the case where the commodities differ [on either side of the transaction].\u201d \u2013 (\u1e62a\u1e25\u012b\u1e25 Muslim 1588)5<\/sup><\/span><\/p>\n

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      Only All\u0101h knows best<\/span><\/p>\n

      Written by Maulana Y\u016bsuf Bad\u0101t<\/span><\/p>\n

      Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

      Darul Ifta Birmingham<\/span><\/p>\n

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      1 \u0623\u064e\u0646\u0651\u064e \u0647\u064e\u0630\u064e\u0627 \u0645\u0650\u0645\u0651\u064e\u0627 \u0644\u064e\u0645\u0652 \u064a\u064e\u062f\u0652\u062e\u064f\u0644\u0652\u0647\u064f \u0627\u0644\u0652\u0642\u064e\u062f\u0652\u0631\u064f \u0627\u0644\u0634\u0651\u064e\u0631\u0652\u0639\u0650\u064a\u0651\u064f \u0643\u064e\u0627\u0644\u0633\u0651\u064e\u064a\u0652\u0641\u0650 \u0648\u064e\u0627\u0644\u0633\u0651\u064e\u064a\u0652\u0641\u064e\u064a\u0652\u0646\u0650 \u0648\u064e\u0627\u0644\u0652\u0625\u0650\u0628\u0652\u0631\u064e\u0629\u0650 \u0648\u064e\u0627\u0644\u0652\u0625\u0650\u0628\u0652\u0631\u064e\u062a\u064e\u064a\u0652\u0646\u0650 \u0641\u064e\u062c\u064e\u0648\u064e\u0627\u0632\u064f \u0627\u0644\u062a\u0651\u064e\u0641\u064e\u0627\u0636\u064f\u0644\u0650 \u0644\u0650\u0639\u064e\u062f\u064e\u0645\u0650 \u062f\u064f\u062e\u064f\u0648\u0644\u0650 \u0627\u0644\u0652\u0642\u064e\u062f\u0652\u0631\u0650 \u0627\u0644\u0634\u0651\u064e\u0631\u0652\u0639\u0650\u064a\u0651\u0650 \u0641\u0650\u064a\u0647\u0650\u0645\u064e\u0627 \u0648\u064e\u064a\u064e\u062d\u0652\u0631\u064f\u0645\u064f \u0627\u0644\u0646\u0651\u064e\u0633\u064e\u0627\u0621\u064f \u0644\u0650\u0648\u064f\u062c\u064f\u0648\u062f\u0650 \u0627\u0644\u0652\u062c\u0650\u0646\u0652\u0633\u0650 – \u0643\u062a\u0627\u0628 \u0627\u0644\u062f\u0631 \u0627\u0644\u0645\u062e\u062a\u0627\u0631 \u0648\u062d\u0627\u0634\u064a\u0629 \u0627\u0628\u0646 \u0639\u0627\u0628\u062f\u064a\u0646 \u0631\u062f \u0627\u0644\u0645\u062d\u062a\u0627\u0631 \u062c\u0665 \/ \u0635 \u0661\u0667\u0665 \u062f\u0627\u0631 \u0627\u0644\u0641\u0643\u0631<\/span><\/p>\n

       <\/p>\n

      2 \u0628\u064a\u0639 \u0627\u0644\u062b\u0645\u0646 \u0628\u0627\u0644\u062b\u0645\u0646 \u0646\u0648\u0639 \u0645\u0646 \u0627\u0644\u0628\u064a\u0648\u0639 \u0641\u064a \u0645\u0639\u0646\u0627\u0647\u0627 \u0627\u0644\u0639\u0627\u0645 \u0648\u0644\u0643\u0646 \u064a\u062e\u062a\u0635 \u062f\u0648\u0646\u0647\u0627 \u0641\u064a \u0627\u0646 \u0645\u062d\u0644\u0647 \u0627\u0644\u0646\u0642\u0648\u062f \u0648\u0647\u0648 \u0645\u0634\u0631\u0648\u0639 \u062c\u0627\u0626\u0632 \u0631\u0641\u0639\u0627 \u0644\u0644\u062d\u0631\u062c \u0648\u0644\u0647 \u0627\u062d\u0643\u0627\u0645 \u0634\u0631\u0639\u064a\u0629 \u0644\u0627 \u0628\u062f \u0645\u0646 \u0645\u0631\u0627\u0639\u0627\u062a\u0647\u0627 \u0639\u0646\u062f \u0627\u0644\u062a\u0639\u0627\u0645\u0644 \u0628\u0647 \u2013 \u0627\u0644\u0627\u0642\u062a\u0635\u0627\u062f \u0627\u0644\u0625\u0633\u0644\u0627\u0645\u064a \u0627\u0644\u0645\u0639\u0647\u062f \u0627\u0644\u0627\u0631\u0648\u0628\u064a \u0635 \u0663\u0665<\/span><\/p>\n

       <\/p>\n

      3 \u0648\u064e\u0623\u064e\u062d\u064e\u0644\u064e\u0651 \u0627\u0644\u0644\u064e\u0651\u0647\u064f \u0627\u0644\u0652\u0628\u064e\u064a\u0652\u0639\u064e \u0648\u064e\u062d\u064e\u0631\u064e\u0651\u0645\u064e \u0627\u0644\u0631\u0650\u0651\u0628\u064e\u0627 \u2013 \u0627\u0644\u0628\u0642\u0631\u0629 \u0662\u0667\u0665<\/span><\/p>\n

       <\/p>\n

      4 \u062d\u064e\u062f\u0651\u064e\u062b\u064e\u0646\u064e\u0627 \u0639\u064e\u0628\u0652\u062f\u064f \u0627\u0644\u0631\u0651\u064e\u062d\u0652\u0645\u064e\u0646\u0650 \u0628\u0652\u0646\u064f \u0623\u064e\u0628\u0650\u064a \u0628\u064e\u0643\u0652\u0631\u064e\u0629\u064e \u0639\u064e\u0646\u0652 \u0623\u064e\u0628\u0650\u064a\u0647\u0650 \u0642\u064e\u0627\u0644\u064e \u0646\u064e\u0647\u064e\u0649 \u0631\u064e\u0633\u064f\u0648\u0644\u064f \u0627\u0644\u0644\u0651\u064e\u0647\u0650 \u0635\u0644\u0649 \u0627\u0644\u0644\u0647 \u0639\u0644\u064a\u0647 \u0648\u0633\u0644\u0645 \u0639\u064e\u0646\u0650 \u0627\u0644\u0652\u0641\u0650\u0636\u0651\u064e\u0629\u0650 \u0628\u0650\u0627\u0644\u0652\u0641\u0650\u0636\u0651\u064e\u0629\u0650 \u0648\u064e\u0627\u0644\u0630\u0651\u064e\u0647\u064e\u0628\u0650 \u0628\u0650\u0627\u0644\u0630\u0651\u064e\u0647\u064e\u0628\u0650 \u0625\u0650\u0644\u0627\u0651\u064e \u0633\u064e\u0648\u064e\u0627\u0621\u064b \u0628\u0650\u0633\u064e\u0648\u064e\u0627\u0621\u064d \u0648\u064e\u0623\u064e\u0645\u064e\u0631\u064e\u0646\u064e\u0627 \u0623\u064e\u0646\u0652 \u0646\u064e\u0634\u0652\u062a\u064e\u0631\u0650\u064a\u064e \u0627\u0644\u0652\u0641\u0650\u0636\u0651\u064e\u0629\u064e \u0628\u0650\u0627\u0644\u0630\u0651\u064e\u0647\u064e\u0628\u0650 \u0643\u064e\u064a\u0652\u0641\u064e \u0634\u0650\u0626\u0652\u0646\u064e\u0627 \u0648\u064e\u0646\u064e\u0634\u0652\u062a\u064e\u0631\u0650\u064a\u064e \u0627\u0644\u0630\u0651\u064e\u0647\u064e\u0628\u064e \u0628\u0650\u0627\u0644\u0652\u0641\u0650\u0636\u0651\u064e\u0629\u0650 \u0643\u064e\u064a\u0652\u0641\u064e \u0634\u0650\u0626\u0652\u0646\u064e\u0627 \u0642\u064e\u0627\u0644\u064e \u0641\u064e\u0633\u064e\u0623\u064e\u0644\u064e\u0647\u064f \u0631\u064e\u062c\u064f\u0644\u064c \u0641\u064e\u0642\u064e\u0627\u0644\u064e \u064a\u064e\u062f\u064b\u0627 \u0628\u0650\u064a\u064e\u062f\u064d \u0641\u064e\u0642\u064e\u0627\u0644\u064e \u0647\u064e\u0643\u064e\u0630\u064e\u0627 \u0633\u064e\u0645\u0650\u0639\u0652\u062a\u064f \u2013 \u0631\u0648\u0627\u0647 \u0645\u0633\u0644\u0645 \u0661\u0665\u0669\u0660<\/span><\/p>\n

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      5 \u0627\u0644\u062a\u0651\u064e\u0645\u0652\u0631\u064f \u0628\u0650\u0627\u0644\u062a\u0651\u064e\u0645\u0652\u0631\u0650 \u0648\u064e\u0627\u0644\u0652\u062d\u0650\u0646\u0652\u0637\u064e\u0629\u064f \u0628\u0650\u0627\u0644\u0652\u062d\u0650\u0646\u0652\u0637\u064e\u0629\u0650 \u0648\u064e\u0627\u0644\u0634\u0651\u064e\u0639\u0650\u064a\u0631\u064f \u0628\u0650\u0627\u0644\u0634\u0651\u064e\u0639\u0650\u064a\u0631\u0650 \u0648\u064e\u0627\u0644\u0652\u0645\u0650\u0644\u0652\u062d\u064f \u0628\u0650\u0627\u0644\u0652\u0645\u0650\u0644\u0652\u062d\u0650 \u0645\u0650\u062b\u0652\u0644\u0627\u064b \u0628\u0650\u0645\u0650\u062b\u0652\u0644\u064d \u064a\u064e\u062f\u064b\u0627 \u0628\u0650\u064a\u064e\u062f\u064d \u0641\u064e\u0645\u064e\u0646\u0652 \u0632\u064e\u0627\u062f\u064e \u0623\u064e\u0648\u0650 \u0627\u0633\u0652\u062a\u064e\u0632\u064e\u0627\u062f\u064e \u0641\u064e\u0642\u064e\u062f\u0652 \u0623\u064e\u0631\u0652\u0628\u064e\u0649 \u0625\u0650\u0644\u0627\u0651\u064e \u0645\u064e\u0627 \u0627\u062e\u0652\u062a\u064e\u0644\u064e\u0641\u064e\u062a\u0652 \u0623\u064e\u0644\u0652\u0648\u064e\u0627\u0646\u064f\u0647\u064f \u2013 \u0627\u062e\u0631\u062c\u0647 \u0645\u0633\u0644\u0645 \u0661\u0665\u0668\u0668<\/span><\/p>\n

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       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Fatwa ID: 06508   Answered by: Maulana Y\u016bsuf Bad\u0101t   Question:   Is forex trading permissible?     In the name of Allah, the Most…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/27283"}],"collection":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=27283"}],"version-history":[{"count":2,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/27283\/revisions"}],"predecessor-version":[{"id":27363,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/27283\/revisions\/27363"}],"wp:attachment":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=27283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=27283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=27283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}