Ruling on Binary Options Trading

Q: What is the ruing on Binary options trading?

 

الجواب حامدا ومصليا ومنه الصدق والصواب

A:  Please see the following link:

http://alqalam.org.uk/fatawa/investments-fatwa/is-it-permissible-to-purchase-stocks-using-call-and-put-options/

Binary options (all-or-nothing options) are simply another form of call or put options and are not sanctioned in Islam.

 

 

And Allah knows best.

Mufti Mohammed Zubair Butt

Al-Qalam Sharī‘ah Panel

One thought on “Ruling on Binary Options Trading”

  1. Binary Options are not trading . It is pure gambling , just the name has changed . You have to select a price and if at the expiry time your selected price is okay you will get ” profit” else you will lose. There is no room in Islamic teachings for such things.

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