Binary Trading

The Darul Ifta does not approve of binary trading. The trade website cited in the query is not permissible. After studying the website, there are many discrepancies and grey areas according to our understanding. Some are as follows:

1. The website states: “Some argue that informed decisions based on market analysis reduce Gharar to acceptable levels.” This statement is very ambiguous as Gharar (uncertainty) in a sale is not acceptable, especially if it will lead to a dispute between the buyer and seller.

2. The website states: “With proper strategy and market knowledge, trading can be viewed as a skill-based activity, not gambling.” This is also incorrect and merely playing with words to legalize what Allah Ta’ala and Nabi Salallahu Alaihi Wasallam have prohibited.

3. The website states: “Binary Trading is not gambling. Binary Options Trading, often misconstrued as gambling, can be conducted to avoid the pitfalls of Maysir when approached with the right mindset. The critical difference lies in the trader’s approach and the use of informed decision-making. By relying on thorough market analysis, economic indicators, and strategic planning, traders can make educated predictions rather than leaving outcomes to chance. This analytical approach transforms trading from a game of luck into a calculated decision-making process.” Gambling is impermissible in Islam irrespective of the way and method. As such, “educated predictions” is merely a camouflaged term for gambling.

These are just some of the flaws that we have discovered by casting a cursory glance at the investment company’s website, and we are certain that there are many more aspects that are contrary to Shariah as well. Many investment schemes have failed and collapsed in the recent past hence, we advise the Muslim public to exercise caution.