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Is Option Trading Halal?

Answered as per Hanafi Fiqh by DarulIftaBirmingham

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

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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