Is it permissible to demand the recovery of the entire capital or 50% of it after its loss in currency trading, due to the account manager trading before the agreed-upon time, knowing that the profits were to be divided equally?
Trading currencies and benefiting from exchange rate differences and market fluctuations is permissible according to Islamic law, provided certain conditions are met, including the immediate exchange (qabd) when converting currencies. If you give money to an agent to trade it in currencies under specific conditions, and the profit is split equally between you, this is a permissible (profit-sharing partnership). If you stipulate to him that he must start at a specific time, but he violates this and starts earlier, and a loss results from this violation, then he is liable. Jurists have stipulated that the capital owner has the right to set conditions for the agent, and that the agent is liable if he violates the capital owner's condition and the capital is lost due to this violation, because the Mudarib's (agent's) hand is one of trust, and he is only liable in cases of transgression or negligence.
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