Is Margin Trading Permissible?

Shaykh Abdul-Rahim Reasat answers a question on the legality of margin trading.

Can you please confirm if margin trading is permissible? This is where you predict if the market will go up or down by using leverage positions.

Thank You.

I pray you are well.

Margin trading is not permissible for a number of reasons. Firstly, because it entails entering into a interest-bearing contract with the broker. “The Messenger of Allah, Allah bless him and give him peace, cursed the one takes interest, the one who gives it, the one who writes [the contract], and those who witnesses it.” (Muslim)

Also, the use of leverage positions, as done in Forex, is problematic as this process uses instruments, such as options and futures, which fundamentally contradict the nature of a sound, Shari‘a-complaint contract. (Mufti Taqi Usmani, Fiqh al-Buyuʿ).

It is better to ask Allah to open the doors of halal provision for you; you’ll be saved from the problems that rain down on people to deal with interest.

May Allah grant you the best of both worlds.

Abdul-Rahim

Checked and approved by Shaykh Faraz Rabbani.

Meeting College Bursary Requirements

Shaykh Abdul-Rahim Reasat clarifies rulings on accepting college bursaries.

I wanted to ask a question about money that I gained from college.

My college gives bursaries to eligible students which comes to £20. I was eligible for such bursary. Now when the winter months started to come, I had to find a way to pray without missing the prayer time, so I spoke with my personal tutor and was able to leave classes about 10 minutes early to prepare to go and pray.

The reason I went early was to avoid praying Asr in the disliked time just before Maghrib. Now for some time I did read Asr and then later pray Maghrib and it may have been okay for me to actually delay Asr but that may have been for a short period. As time went by, if I delayed Asr I would either be in the disliked time or missed the prayer. Now I think I found out that it would have been okay to delay asr into disliked timing as it was out of necessity.

I ask this because one of the conditions of bursary is that the attendance be around 94% which mine still was. Based upon this, would the money I got be halal or haram? As I thought that I should be praying out of disliked times but then someone said that out of necessity it could be done, so I’m not sure that in a way whether I was entitled to that money and the benefits that came from that (such as free college meals, printing credit).

I contacted the college asking whether late marks affect attendance and the response was that they don’t. Based upon this would what I used to do with regards to my prayer result in the money I still got be halal, or would it be considered haram. And if the latter, how should I go about repaying this?

(Will the same apply to those times where it would be okay for me to actually delay Asr close to Maghrib without falling into makruh timings?)

I pray you are well.

It is fine for you to take the bursary, especially since they said had that punctuality, etc, does not affect the arrangement. Usually, only actually attendance is what matters.

Do your best to pray asr before the makruh time enters, work hard, show good character, and be an ambassador of Islam to the people around you with the intention to please Allah. “And whatever you send ahead for yourselves of the good, you will find it with Allah to be better, and much greater in reward; and ask for Allah’s forgiveness. Indeed Allah is the Forgiver of Everything, and Ever-Kind.” (Sura al-Muzammil 73:20)

May Allah grant you every success of this world and the next.

Abdul-Rahim

Checked and approved by Shaykh Faraz Rabbani.

Forex Trading and Poker Games

I would like to know what the ruling on Forex trading is given the interest free account. E.g., trade ZAR for Dollars etc., by watching the markets and buying at the correct moment.

I would also like to know what the ruling is on playing poker? How different is this from gambling and since poker is just a game, can one compare this to say playing golf for a monetary prize or partaking in Olympics for a monetary prize?

Jazak Allah khayr.

Regarding Forex trading, please read Is Forex Trading Permissible?

Regarding poker, it is forbidden in the Qur’an:

“They ask you about wine and gambling. Say: ‘In them both lies grave sin, though some benefit, to mankind. But their sin is more grave than their benefit.’” (Sura al-Baqara 2:219)

O believers, wine and gambling, idols and divining arrows are an abhorrence, the work of Satan. So keep away from it, that you may prevail. Satan only desires to arouse discord and hatred among you with wine and gambling, and to deter you from the mention of God and from prayer. Will you desist?” (Sura al-Maida 5:90-91)

It is different to sports in that it relies largely on chance. See also My Brother Gambles to Support Us. What Should We Do? and Is It Permissible to Play Board Games With Dice? [Video].

I pray this helps.

Farid

Checked and approved by Shaykh Faraz Rabbani.

Selling Investment Propeties

Ustadh Salman Younas is asked if it is permissible to sell investment properties for a living.

I wanted to know if it is permissible to work in a business that sells properties to property investors? My job is to persuade them to take up the opportunity in investing in a property, and gain earning from commission from that sale.

The permissibility of any job depends on:

  1. The specific work is in itself permitted.
  2. The primarily line of activity of the company is permitted.
  3. The majority (51 percent) of the income/profit of the company is earned/generated through licit means.

The business that you describe would in all likelihood fulfill (b) and (c). You will have to look at the nature of the work you do specifically to see if it is also permitted. Again, on the surface, the work of persuading others to invest in a property is not problematic in itself.

However, if it involves directly assisting them in formulating and finalizing interest-based loans and agreements, the work would be highly problematic. But if this is done by someone else, while you only bring them to the table and convince them to invest, your work is permitted.

Salman

Checked and approved by Shaykh Faraz Rabbani

Selling Investment Properties

Ustadh Salman Younas is asked if it is permissible to sell investment properties for a living.

I wanted to know if it is permissible to work in a business that sells properties to property investors? My job is to persuade them to take up the opportunity in investing in a property, and gain earning from commission from that sale.

The permissibility of any job depends on:

  1. The specific work is in itself permitted.
  2. The primarily line of activity of the company is permitted.
  3. The majority (51 percent) of the income/profit of the company is earned/generated through licit means.

The business that you describe would in all likelihood fulfill (b) and (c). You will have to look at the nature of the work you do specifically to see if it is also permitted. Again, on the surface, the work of persuading others to invest in a property is not problematic in itself.

However, if it involves directly assisting them in formulating and finalizing interest-based loans and agreements, the work would be highly problematic. But if this is done by someone else, while you only bring them to the table and convince them to invest, your work is permitted.

Salman

Checked and approved by Shaykh Faraz Rabbani