Is trading in the currency market (forex) permissible, especially when borrowing euros and selling them, anticipating a fall in the dollar's price, then repurchasing them after the drop to repay the loan and make a profit, taking into consideration that the borrowing process is done electronically or through a broker?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is permissible to trade currencies through Forex if the prohibitions are avoided and the Shariah controls for currency exchange are adhered to. Benefiting from changes in exchange rates is not a reason for prohibition. However, if the lending broker stipulates to the borrower that their trading must be through them, the transaction becomes forbidden.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/164000
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- Ftawy
- Original fatwa ID
- 164000
- Imported
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- Source text, unreviewed
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