General consensus is that foreign exchange markets trading is permissible under Islamic law where the trading is of one currency for another. However, there is some debate whether forward trading on foreign exchange markets is prohibited under the Riba prohibition rules of Islamic law. Some of the differences in opinions are because of the varying interpretation of Fiqh by the various schools of thoughts. However, despite such differences, foreign exchange (forex) trading has been exercised by numerous Muslims in the Middle East for many years. For most, investing in the foreign exchange markets has been the best source of investment, especially when stock trading has not been very easy until recently for people living in the Middle East. |
| In very simplistic terms, forex trading works very similar to stock trading. Foreign exchange trading involves investing your funds in a certain currency and selling later when prices are favorable. For example, a few months ago, the exchange of the US dollar to British Pound was very close to 1 US dollar to 1 British Pound. However, lately, one British Pound is approximately equivalent to 2 US dollars. If you would have bought British Pounds at that time, you would have almost doubled your money by now. | |
No comments:
Post a Comment