What is the ruling on trading in Forex by buying and selling gold paired with the dollar?
[AR_ID:4303]
🤖
AI Notice: This translation was generated by AI and is currently awaiting human verification.
1 Answer
Peace be upon you. The esteemed Ayatollah Sayyid Sistani (may Allah protect him) does not express an opinion on the activities of such companies or working with them. Source: Special Inquiry. The esteemed Ayatollah Sayyid Khamenei (may Allah protect him) states that the validity of transactions in this market depends on adhering to Sharia and legal regulations. According to some experts, Forex brokers are divided into two categories: the first category consists of most brokers who have merely created a virtual page online without a real presence in the currency market. This category receives clients' funds and uses them to achieve their goals and programs, providing only an online platform for clients to conduct what appears to be foreign currency transactions. Therefore, the transactions conducted are not real and invalid, and do not confer ownership of the resulting profit. The second category consists of genuine brokers who have a real presence in the currency market and buy and sell currencies with clients' funds, which is permissible as long as Sharia and legal regulations are observed. However, the following points must be noted: 1. Transactions must be conducted realistically, ensuring actual buying and selling of currencies. Therefore, if profit is made based on predicting currency price fluctuations, it is not permissible, and selling one currency for another of the same kind is also invalid. 2. Margin trading, which involves borrowing from the broker, is considered a loan with interest, which is usury (riba) and forbidden. Source: Special Inquiry. May you be successful in all good.