Are binary options halal and compatible with Islamic traditions? This has become an important question for potential Islamic options traders as the financial industry becomes available to anyone through online trading accounts. Here we look at what Sharia Law means for binary options trading and whether it is “Halal” or “Haram”. The growth of online trading in the financial industry over the past two decades has opened up new horizons for retailers of all races and creeds. As a quarter of the world’s population is Muslim, more and more Muslim traders are forced to join the online Islamic binary options trading scene. In Islamic economic jurisdiction or Sharia law, the application of Riva’s rights or interests is prohibited and considered a great sin. Many brokers came up with the idea of “halal”, sensing the opportunity to benefit themselves and the Muslim traders.
Halal Binary Options Broker, Philippines
These brokers are marketing specific account types that work with halal and are compatible with Islamic traditions and sharia law.
Is a halal or haram binary option?
Muslim life is guided by Sharia law. Sharia is an Old Arabic word meaning really is the way to follow . Muslims must adhere to Islamic principles that cover all aspects of life, from social issues to the sacred Qur’an to economic issues described. In the banking and investment sectors, Sharia law prohibits lending money. Instead, investments in the Muslim world are governed by the concept of “risk sharing” through principles such as Bai’al’inah (purchase and acquisition agreement), Bai’bithaman ajil (delayed sales) and Bai’muajjal (credit sales). ), Bai Salam, Mudaraba (profit sharing), Muraba and Musawa
As Sharia law applies to binary options trading, this means that you will not be allowed to take positions or claim overnight interest. In the spot financial market, trading takes place on a 24-hour basis. All public market locations move on to the next 24-hour cycle until 5 p.m. New York time. Then the daily interest is added to the brokerage account. The fact that a binary broker debits a client’s account has the same return as a forex broker or the interest that may be incurred or paid in a single transaction makes it possible for the transaction to occur simultaneously. parallel to Islam. This situation creates a conflicting course of religious beliefs for Muslim traders.
Islamic trading accounts
To overcome this dilemma, some innovative binary options brokers have come up with the idea of an Islamic trading account or an online no-swap account, eliminating all forms of Riba. while trading. For example, instead of automatically transferring open market positions to pay overnight interest, open positions in an Islamic trading account will close as soon as 5 p.m. in New York and immediately reopen, due to That avoids paying interest within 24 hours. Yes
To be able to claim that a broker offers Islamic trading accounts, these accounts must at least meet the following conditions:
- Implement the deal immediately
- Immediate settlement of transaction costs
- No interest on transactions
We have compiled a list of major binary brokers that offer accountsn Islamic trading to help traders choose a broker that offers an Islamic trading account. The above list is not exhaustive, only a guide.
Other considerations
If someone has used a Halal Binary Options account but you have little or no knowledge of how to trade or how to trade, you are gambling with Binary Options. This is definitely Haram. Only individual traders will know if this is true.
Also, every contract or trade has to have a ‘winner’ and a ‘loser’ which means binary options cannot be halves as not all parties can profit. or extract the value from the deal. . Some brokers offer Islamic Islamic accounts and take steps to comply with Islamic principles, but there will always be those who view the whole binary options concept as harassment.
This site (binaryoptions.net) cannot tell if binary options are really halal or haram. Indeed, we cannot give advice in this regard, as it may depend on the skill of each trader. See the references below for further explanation.