Q: A colleague of mine has asked if Binary Trading is Halaal or Haraam? Can you please shed some light on this matter ?
Respected Brother in Islam
As Salaamu Alaykum wa Rahmatullahi Wa Barakaatuh
Haamidaw wa Musalliya
Trading in Binary Options is not a legitimate form of earning due to a number of factors, mainly the fact that the transaction does not entail trading in an actual commodity but rather earning by predicting the fluctuation and movement in the price of a commodity. This is not a permissible way to supplement one’s income. You may consider other investment methods and we could guide you, where possible, Insha Allah.
The Shariah has provided universal guidelines and safegaurds with regards to our commercial dealings and protects the interest of all parties in the economic chain. The regulations ordained by the Shariah are for the individual and collective benefit of the community.
And Allah Ta'ala Knows Best
M.D. Mangera (Mufti) and Shafique Jakhura (Mufti)