As Indian people are growing towards trading and choosing options as a assest There is a growing population of traders in India choosing...
As Indian people are growing towards trading and choosing options as a assest
There is a growing population of traders in India choosing
Options as an investment tool. In India , Muslim population as per the record was
15 % of the country. And people keep asking the question belong to trading being
as Muslim, weather the option and future trading is halal or haram. Many
Muslims across Quora Facebook and other forums are asking-
'Is it permissible in Islam to nifty trade and bank nifty trade in Options?'
'Is it halal to buy or sell Trading Options?'
And so on.
Is stocks trading halal or haram as Muslim trader?
There is extensive acceptance of stocks trading being Halal providing-
- The
stocks are of a company that doesn't deal with a product or services which
is haram.
- The
stocks are of a company that doesn't deal with a product or services which
are used to harm a Muslim country.
- Holding
,Buying and selling of lawful stocks is tolerable in Islam.
However, there is a divide in opinion on whether options trading is
halal or haram.
The Arguments in favour of Options Trading as
halal-
A call option is a contract that gives the buyer the right but not the responsibility
to buy a specified underlying at a specified price and on a specified date. So
it only gives you right but not the compulsion. And is more like paying a down
payment to buy a vehicle or house with no obligation to buy it. The buyer can
refuse to buy the underlying and penalty the down payment. And some scholars
believe such contracts are allowable.
The argument against Options Trading as halal-
In Share market options contracts that are not Sharia contracts and hence haram
because-
- There
is no specific object or item or financial right which can be rewarded
with something else
- There
are a winner and loser and hence only some parties are benefiting from the
trade.
- It
is a type of insurance
- It
is speculative and is connected to fluctuations in prices
·
As we said earlier, there's no decisive answer to options
trading being halal or haram. While a lot of people study trading in options to
be halal and hence participate in the Options market, there's a significant
population which considers it not in accordance with Islamic principles.
·
There are many whose review depends on the nature of the trade
and the underlying of the Option. And therefore, it is best to seek advice from
a religious professor who can understand your trades and guide you ahead.
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