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Shariah Compliancy of commodity trading

Answered as per Hanafi Fiqh by Askimam.org

I just read that trading in currency is not allowed in the shariah I would like to know whether one can trade in gold silver petrol and other commodities online 

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

The Shariah Compliancy of commodity trading depends on the modus operandi of the transaction. Various online trading platforms offer commodity trading products and facilities. Many of the these facilities are not Shariah Compliant since they contain impermissible elements such as short selling, no possession/ownership of commodities, non-tangible goods, interest, insurance, gambling and various other impermissible elements. Kindly advise on the modus operandi of the actual transaction/facility you refer to in order for us to provide a Shariah ruling.

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and Approved,

Mufti Ebrahim Desai.

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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