Is Option Trading Halal?

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

 

 


[1] Fiqh al-Buyu, volume 1, page 287 -289

 

[2] Muslim 1153

 

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