Q: In trading, when looking at charts, you can leave a auto-order to buy for you when price reaches a certain level. If you are not there at this time, is the purchase permissible? Is your presence necessary for the contract? Sometimes, you might be asleep but want to purchase at a given price, so you […]
Read more...Category: Capital Markets Trading Fatawa
What is the Islamic position on ‘Spread Betting’?
Q: What is the Islamic position on ‘Spread Betting’? Please find below two definitions given for this activity. From http://www.investopedia.com/terms/s/spreadbetting.asp Definition of ‘Spread Betting’ A type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), […]
Read more...Is leveraged trading through a broker providing interest free brokerage account permissible?
Q: Is leveraged trading through a broker providing interest free brokerage account permissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Leveraged trading is not permissible as you are selling something you don’t have or does not even exist.
Read more...What is the 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.
Read more...Is trading “covered warrants” on the stock market permissible?
Q: Is trading “covered warrants” on the stock market permissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Warrants represent a right to purchase an asset similar to a call option and do not represent the underlying asset itself. Thus, they cannot be traded.
Read more...What is the Islamic position on CFD Trading?
Q: What is the Islamic position on CFD Trading? I know Spread Betting is not allowed and is fundamentally different to CFD Trading as the former is a synthetic market that can be manipulated by the market makers. Additionally, with regards to ‘owning the stock’, an individual does not own the stock if bought via […]
Read more...How to determine the unlawful percentage received from dividends?
Q: I would like to know with regards to investing in stocks and shares more specifically on purification of the income received as a result of an investment in a company that is sharia compliant according to your screening criteria outlined in the article on ‘investing in stocks and shares’ http://alqalam.org.uk/research-papers/investment-in-stocks-and-shares/. The question I would like to […]
Read more...Can I recover initial investments made towards CFDs?
Q: Would it be allowed to recover my initial investment made into CFDs or do I call it ‘quits’? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: You cannot take possession of any money that you have received through the CFDs investments even if it is to recover your initial capital deposit. As CFDs […]
Read more...Are gold and silver ETFs such as GLD and SLV halal to invest in?
Q: Are gold and silver ETFs such as GLD and SLV halal to invest in? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Gold and silver ETFs may be traded in principle provided the fund itself and the manner in which it is traded is compliant with sharia.
Read more...Is it permissible to buy and sell precious metals and commodities on the market?
Q: I am interested in trading precious metals and commodities on the market and wanted to know if this is halal. Looking at the market they seem to sell silver based on GBP. Am I allowed to buy and sell these items in the same way shares are bought and sold, in order to gain […]
Read more...What’s the Islamic ruling on options to buy/sell something in the future?
Q: Are two parties allowed to simply agree to an ‘option’ for both parties in the future? For example, A agrees to an option with B that A may/may not buy something in the future. Likewise, B also agrees to an option to sell/not sell in future. Is this allowed? الجواب حامدا ومصليا ومنه […]
Read more...Can I invest in premium bonds?
Q: Can I invest in premium bonds? The Al-Qalam Shariah Scholars Panel is respectfully requested to advise on the Islamic position regarding premium bonds. Are they a suitable way for Muslims to invest? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Premium Bonds are not suitable for Muslims to use as an investment […]
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