What is Islam saying about the trading of Forex through the Internet and is it halal or haraam? - الحج و العمره

What is Islam saying about the trading of Forex through the Internet and is it halal or haraam?

October 14, 2018
What is Islam saying about the trading of Forex through the Internet and is it halal or haraam?


What is Islam saying about the trading of Forex through the Internet and is it halal or haraam?
After the subject has been reduced to immediate Forex trading and assuming no interest element, we move to the other position. Seems to be only permissible "as long as" exchange "is done directly (hand in hand)." Thus, the Prophet Muhammad, peace be upon him, thought of the exchange of other types of goods between two parties, aware that this kind of trade was normal and fair. The question now is what is "hand in hand"? In the past, there were no computers or phones, so the prospect of a face-to-face deal was normal. In fact, we can say that it was normal and acceptable for a deal between different parties. In contemporary times, it can be said that trading in Forex, the transaction takes place between broker Forex and trader, and therefore can be included under the definition of different parties, which is permissible under Islamic law.

Another widely accepted condition is that the actual exchange must take place during the same session in which the contract takes place, that is, it must be done fairly immediately. We seem to be in a strong position here, as when trading with a forex broker, it does instantly. Interestingly, this may indicate that all non-market trades (break points or limits) are haraam!

And here we get the biggest hurdle in trying to answer the question of trading in Halal or Haram Forex? "In general, Forex traders do not expect to get the actual currency they buy and do not own the commodity they sell. The currency that will go down Is this expectation permissible?

It is very difficult to answer this question. We can begin by saying that Islam recognizes that almost all human beings seek to improve their financial situation, and that life contains great elements of ambiguity. In life, we face many choices, the results are unclear, and we seek to use intelligence and skill in choosing between options that will give the best results. But then we have to say that gambling is strictly forbidden in Islam, even if it is in the form of entertainment by playing with small money that the gambler might say he is capable of losing.
By measuring these competing elements, it can be said that the method of speculation is what makes the difference. One of the authors studied the subject and stated that speculating on the basis of fundamental analysis is permissible, but not on the basis of technical analysis. The interesting explanation is that betting on the basis of technical analysis is a bet on others' bets and relying on the behavior of the public to influence your behavior. Gambling, which is haraam.

This argument can be said to be false in relation to other market realities. For example, is the speculator who believes that the USD will rise against the EUR due to economic fundamentals is obliged to trade immediately and is not allowed to take any action for the timing of trading at a psychologically appropriate moment?

The strongest argument can be that a Muslim should not speculate unless he has strong grounds for success. This means that trading must include either an element of fundamental analysis or technical analysis and that the trader has already a strong reason to believe. As a result, trends that have an academic record may be tracked as a successful trading method in the financial markets, and trading in these trends using Forex brokers. The trader can say that the strong trend is easier in terms of composition, and it is likely to contain a underlying underlying reason, more than the traditional economic fundamentals that may be discounted by professional economists.What is Islam saying about the trading of Forex through the Internet and is it halal or haraam?
After the subject has been reduced to immediate Forex trading and assuming no interest element, we move to the other position. Seems to be only permissible "as long as" exchange "is done directly (hand in hand)." Thus, the Prophet Muhammad, peace be upon him, thought of the exchange of other types of goods between two parties, aware that this kind of trade was normal and fair. The question now is what is "hand in hand"? In the past, there were no computers or phones, so the prospect of a face-to-face deal was normal. In fact, we can say that it was normal and acceptable for a deal between different parties. In contemporary times, it can be said that trading in Forex, the transaction takes place between broker Forex and trader, and therefore can be included under the definition of different parties, which is permissible under Islamic law.

Another widely accepted condition is that the actual exchange must take place during the same session in which the contract takes place, that is, it must be done fairly immediately. We seem to be in a strong position here, as when trading with a forex broker, it does instantly. Interestingly, this may indicate that all non-market trades (break points or limits) are haraam!

And here we get the biggest hurdle in trying to answer the question of trading in Halal or Haram Forex? "In general, Forex traders do not expect to get the actual currency they buy and do not own the commodity they sell. The currency that will go down Is this expectation permissible?

It is very difficult to answer this question. We can begin by saying that Islam recognizes that almost all human beings seek to improve their financial situation, and that life contains great elements of ambiguity. In life, we face many choices, the results are unclear, and we seek to use intelligence and skill in choosing between options that will give the best results. But then we have to say that gambling is strictly forbidden in Islam, even if it is in the form of entertainment by playing with small money that the gambler might say he is capable of losing.
By measuring these competing elements, it can be said that the method of speculation is what makes the difference. One of the authors studied the subject and stated that speculating on the basis of fundamental analysis is permissible, but not on the basis of technical analysis. The interesting explanation is that betting on the basis of technical analysis is a bet on others' bets and relying on the behavior of the public to influence your behavior. Gambling, which is haraam.

This argument can be said to be false in relation to other market realities. For example, is the speculator who believes that the USD will rise against the EUR due to economic fundamentals is obliged to trade immediately and is not allowed to take any action for the timing of trading at a psychologically appropriate moment?

The strongest argument can be that a Muslim should not speculate unless he has strong grounds for success. This means that trading must include either an element of fundamental analysis or technical analysis and that the trader has already a strong reason to believe. As a result, trends that have an academic record may be tracked as a successful trading method in the financial markets, and trading in these trends using Forex brokers. The trader can say that the strong trend is easier in terms of composition, and it is likely to contain a underlying underlying reason, more than the traditional economic fundamentals that may be discounted by professional economists.

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