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Monday, 3 January 2011

Forex trading is Halal or Haram?

Many Muslims still have doubts as to whether trading in the Forex market halal or haram, that is, whether sanctioned by religion. What are the views of Islamic scholars on trade in currencies, equities, indices and commodities? If the illegal trade of these instruments in the eyes of Islam?

Nabi Muhammad SAW said in the story of Abu Hurairah, "You shouldn't trade what you don't have."

So, if taken literally, the entire trading currencies, stocks or commodities forbidden, because they are not physical assets under our control. But even here we must schedule changes of this text was only hundreds of years and have over time developed.

Many modern scientists thought, as Ibn al-Qayyim definitely against the literal interpretation of this text. This ban has not been found in al-Qur'an fatwa or the Sunnah.

In the Sunnah Nabi is actually illegal, which does not belong, not in the sense that they physically can not just keep selling in the currency and equities, but in the sense that article or product sold actually belongs to someone else . For example, to sell a lost camel even illegal in Islam and if you do not receive the permission of the original owner to complete a transaction!

It is legal when a transaction in which the products are guaranteed to be delivered to the buyer (you certainly have the pound sterling against dollar, if we trade in the vicinity in the forex market.) But it is illegal to do business with may be the owner of the camel, the property right and take the glass away, then you have no product delivered to the buyer.

These are the formulas that hold the legality of a dealing:

* Products must be unique with respect to the nature, characteristics, quantity, price and location of the swap transaction
* The funds will be defined to be by the employment offices for the transaction must be clearly defined, dinars, DH, rupee, the dollar, or things which can be measured or weighed.

And so the best of our ability to interpreting Islamic laws, currencies, equities and commodities is written in accordance with the spirit of Islamic law.


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