Is Binary Options Halal and compatible with Islamic traditions?

Halal Binary Options - Islamic Trading and Brokers

This has become an important question for prospective Muslim options traders as the financial industry has become available to everyone through online trading accounts. The development of online trading in the financial industry in the last two decades has opened up new horizons for retail traders of all races and creed. These brokers are marketing themselves as Halal and compatible with Islamic tradition and Sharia Law.

The life of a Muslim is guided by Sharia Law. A Muslim is expected to abide by the Islamic principles covering all aspects of their life from social matters to economic matters that were expounded in the holy Koran. In the area of banking and investments, Sharia law strictly forbid the lending of money with interest.

When Sharia law is applied to Binary options trading, this means interest that is earned or charged for an overnight position is prohibited as well. In the spot financial markets, trading is done on a 24 hours basis. By 5 pm New York time, all open market positions are then rolled over to the next 24 hours cycle.

Algorithmic Trading

This situation puts Muslim traders on a collision course with their religious beliefs. For example, instead of having an open market position rolled over automatically making overnight interest payable, open positions in Islamic trading accounts are closed by 5 how do i buy lululemon stock New York time redwood binary options broker coaching then reopen immediately hence avoiding any interest payable for the fresh 24 hour cycle.

To help traders in their selection of brokers that offer Islamic trading accounts, we have mtf forex freedom bar a contrarian stock trading of leading binary brokers that offer Islamic trading accounts.

It should be noted that the list above is by no means exhaustive but is just a guide. If someone used a Halal binary options account, but had little or no knowledge of what or how to trade, then they would be using binary options to gamble — and this would certainly be Haram.

Only the individual trader can know whether this is the case. Please note that this site — binaryoptions. It appears that it might also be dependent on the skills of the individual trader, thus in 2 hour is binary options trading halal making it impossible for us to give advice on the matter.

See the references below for further clarification. Halal Binary Options and Islamic Trading Accounts Is Binary Options Halal and compatible with Islamic traditions? Broker 2 hour is binary options trading halal Min Deposit Payouts Bonus.

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The information on this site is for general information purposes only and does not claim to be comprehensive or provide legal or other advice. The views expressed in contributor articles or on the forum are expressed by those contributors and do not necessarily reflect the views of BinaryOptions. Articles and other publications on this site are current as of their date of publication and do not necessarily reflect the present law or regulations. Please note if you are from the USA: These companies are not supervised, connected or affiliated with any of the regulatory agencies such as the Commodity Futures Trading Commission CFTCNational Futures Association NFASecurities and Exchange Commission SEC or the Financial Industry Regulatory Authority FINRA.

We warn US citizens of the dangers of trading with such entities and strongly advise that they take legal advice on this in the US.