Is Binary Option from an Islamic account (No riba and swap-free) halal or haram?
lately I discovered the Binary Option system, with a little bit of research I found companies who offer an Islamic Account to trade.
However when I searched on the internet to find if this kind of trades is Halal or Haram, I found myself stuck between two opinions, some say that it is halal if you avoid trading in currencies, you trade just in commodities (gold, silver, oil), stocks (Facebook, Amazon, Apple) and indices, and some say that it is Haram.
The problem is that no one is talking about the Islamic account itself, whether it makes any difference or not.
Some sites that offer an Islamic account:
24bulls 24option bigoption.
Could anyone please help me with this?
7 Answers 7.
The problem with Binary options(also options and futures) is that you don’t directly deal with the underlying item. You never become the owner of the underlying item. Instead you are betting on the way the underlying item’s price moves. If you predict the movement correctly you get money and if you predict wrong you lose money. So I think it is pure gambling.
Binary option is not Haram essentially. I don’t know how much you have studied this system, but please note that in this system 30 percent of the people will get rich and about 70 percent will lose. From any side you look at these binaries you can find out this. This kind of trading is not Halal because of what I mentioned.
In my country, Ulamas have forbidden this kind of trading.
Well, i think binary options IS gambling, there’s a thin line between binary options and forex trading (gambling and trading) binary options are about betting and forex trading is about selling and buying currencies. Binary options : is betting wethere bulling or bearing Forex trading: forex is buying and selling currencies with the hope that you earn money As i mentioned above, if we talk about fundamentals about trading, there’s a very thin thin difference between betting and trading. In simple and common trading (such as trading or buying food) the wholesale sellers try to take profit of the market volatility so they try to “predict” proces. But betting you know is to bet is giving money without buying something I consider binary options like betting for football .. The fundamental difference between betting and forex.pm trading is almost same between business and ribah (in quran’ they said ribahis business, allah said NO) Therefore i consoder binary options haram (not fatua) and to prevent doing things haram i prefer avoid dealing with subjects still in discussion until a real FINAL result or fatua is released Ua allahu aalam Assalami alaikom.
It is interesting to note that claims of 100% are made by those who can not justify it.
It is my understanding that for a method to be gambling a stake has to be made which has risk to be lost.
In binary trading it is gain or no change ie zero gain; nothing is being lost therefore not gambling in Islam therefore halal.
Non Muslims such as HMRC, for tax purposes, classify it as gambling based on behaviour not the exact detail.