Question

Can we trade in options in stock market that is call option?

In call option when we buy it and the price of the stock increases we will be in profit. And if the same stock price goes down we will be in loss. And both profit and loss are ours.

Answer 1

Ref. No. 1952/44-1856

In the name of Allah the most Gracious the most Merciful

The answer to your question is as follows:

If the business of the company does not involve haram work, and the principles of muzarabat (partnership) are followed while distributing the profits, then it is permissible to trade in such a company within the scope of profit and loss. If these conditions are met, dealing in shares of the company will be allowable, otherwise not.

Apart from this, do tell us what is the form of trading in options and what does the company do, if all these things are explained in detail, the answer will be written in detail too in-sha-Allah.

And Allah knows best

Darul Ifta

Darul Uloom Waqf Deoband