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