What is the ruling on trading currencies (Forex) according to the mentioned conditions, which include sharing in profit and loss, rejecting margin borrowing, rejecting compensation in case of loss, not taking commissions on overnight positions, and prompt deposit and withdrawal, with the stipulation of increasing the number of trades and capital monthly?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
Forex trading (international currency exchange) involves Shariah-related concerns such as the margin system (a loan that draws benefit) and holding overnight positions. If a trader can avoid these concerns by entering as a partner with the brokerage firm while adhering to Shariah controls, then it is permissible for them. However, the company's condition of increasing the daily number of buy and sell transactions is not permissible, as it may lead to the trader's loss and contradicts the purpose of the Mudarabah contract, which aims for profit. Conditions that contradict the essence of the contract and defeat its intended purpose are invalid conditions.
Summarized from the full answer at Ftawy · imported
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- 74566
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