Islamic Juridical Ruling on Binary Option Internet Transactions

Document Type : Original Article

Authors

1 Department of Theology, Faculty of Law and Theology, Shahid Bahonar University of Kerman, Kerman, Iran,

2 Associate Professor, Faculty of Law and Theology, Shahid Bahonar University of Kerman, Kermanکرمان

3 .M.A student, Department of Theology, Faculty of Law and Theology, Shahid Bahonar University of Kerman, Kerman, Iran,

Abstract

   Binary option is a type of internet-based commercial activity that is observable globally today. In this transaction, the broker acts as an intermediary between the parties with a predetermined profit. Each party deposits an amount as initial capital into their account. The trader, based on an analysis of price fluctuations within a specific timeframe, predicts the future price of an asset. In return for a correct prediction, the trader receives their principal investment and the predetermined profit; otherwise, they lose their entire initial capital. Due to the increasing prevalence of this type of transaction, clarifying its jurisprudential ruling appears to be essential. This research endeavors to deduce the juridical ruling on binary option transactions within Imāmī jurisprudence and, as far as possible, to collect and compile the views of contemporary Shīʿa jurists through istiftāʾ. Some jurists maintain that binary option transactions are impermissible (la-jawāz), considering income derived through this method problematic. Others have deemed it permissible (bilā-māniʿ), provided it adheres to the Sharʿī conditions of a valid transaction. Among these viewpoints, the position of impermissibility holds greater soundness, based on the Qurʾan, the Sunnah, and jurisprudential principles, due to its semblance of being artificial (shibh-i ṣūriyat), its lack of conditions for a valid transaction, and its similarity to qimār (gambling).

Keywords

References

 
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