Forex in Islam, permissible?

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Forex- is a short form from a word Foreign Exchange.

why people play forex?

To get rich easily although they know there is no easy money out there. It is really frustrating the there is a lot of Bruneian out there who are fall into this rich scam.

Are you sure?, Do you know that only 10% out of 100 are success in Forex trading, So be ready to loss your money as forex involve a very high risk. You might loss all your money in less than a minute.


Since the availability of internet years ago,

" Forex game now become easy and can be done anytime, anywhere and even if you just have small amount of money."


A long time ago, Foreign exchange is introduce to make trading become 'fair'. But the real concept now has changed since the developing of idea to get rich easily.

Before Forex game available in Internet, only rich people who own at least $100,000 can play Forex game. That why Forex it is not so popular before year 1995. But why now it is getting popular day after day...

This is because now Forex can be easily be trade. Forex player is no longer require 'middle man' (broker) to do forex as they can just click one button and the trading is done and the most important thing is that you can open forex account as low as $1.00!

In real Forex world, you cannot play Forex unless you own money more than $100,000. But now, minimum cash required to play Forex is being decrease by the forex online brokers to make it attractive.

But a word decrease cannot represent the actual meaning how the Forex trading now become cheaper. In online Forex, people starts to use leverage to their cash account.

Back to the year 1995, people starts to play Forex online at their PC, because less money is require and people are fascinating to earn money easily.

The online version of playing Forex is using leverage (Financial leverage),

by using financial leverage we are not require to own $100,000 money anymore, we can use ratio

1:100
1:10
etc

in Online Forex, you are given option to choose leverage type you want to use in your trading.
For example you may use leverage of 1:100
so you only require $1.00 to present $100
and since in forex, the standard amount to play is 100,000 , (and mini account is either 10K or 1K)
so you need to have $1000 (100,000 divide by 100)
so your $1000 now represnt $100,000 .

Why you need that $100,000

maybe you think the higher the ratio, the better it is... but it is not, because playing Forex has very high risk, (for your information out of 100 people play Forex, only 10 are survive, so your chance to win forex is just 1 out of 10), but it is not depending on luck but depends on how good you are, how careful you are and how correct the technique you use to predict Forex trend- Discipline is the most crucial.

Remember, in Investment term, the higher the return, the higher will be the risk too. so people who are able to take risk only are suitable to play Forex.

If you read my blog up to here, I think you are interested about Forex, you can use google.com to search about forex.

but finish reading my blog first
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Ok back to my topic,

Forex in Islam, is it permissible?

Actually, Forex is valid and Islamically permissible.

Is online Forex permissible?

Actually depends on how the transaction of trading are made

Only forex using leverage of 1:1 is permissible

Since in forex you are buying or selling money. So to be permissible in playing Forex in Islamic way, the actual money has to be existed (tangible) during the transaction which is never happened in online forex tading.

In online forex trading, people use leverage to present their 1000 to be 100,000 so that they are eligible to play forex and in order to rise the profit they will earns.

But in Islam, this type of trading is not allowed, since you do not own that 100,000 in real. you only own 1000.

so in Forex using leverage that is not 1:1 is not allowed (haraam)

"A leverage of 1:1 is ideal because, With reference to Hadith, we are not allowed to sell what is not in our possession. "

Futhermore in forex, swap / interest rate is involved, you account will be either debited or credited by some RIBAA once you open your overnight position.

In Islam,

you only allowed to trade forex, that is


leverage of 1:1
on spot trading (not futures trading)
no swap/ interest rate (ribaa) involve

Conclusion
Forex that use any leverage that is not 1:1 make permissible forex trade to become haram. On spot forex is allow but future forex is not allow in Islam. for the trading to be permissible in Islamic perspective, the trade have to be done on time and exchange of thing on spot and the things is belong to you

you can read alots about forex in Islam in
http://www.zaharuddin.net/index.php?option=com_content&task=view&id=300&Itemid=72
http://www.zaharuddin.net/index.php?option=com_content&task=view&id=655&Itemid=72
or google it

But I know some people disagree with my conclusion, yea I can't deny that since you can read few Fatwa online that said Forex is permissible in Islam. It is depends on your thinking and your believe.

(pic source : http://www.forexoutpost.com/forex.jpg)

Caviar

I was watching National Geographic when a word 'Caviar' was hitting my eardrum. From the sound of the word, I can see how interesting to know what is caviar actually.

So Caviar is actually fish egg or fish roe. Some get it from Salmon, Sturgeon or other type of fish.

But the most expensive Caviar is coming from Sturgeon fish.

Due to its expensive price, it is not surprise to see why black market selling this Caviar exist especially in Iran, as the most tasteful Caviar is coming from Iran itself.

And usually when people said Caviar, they are referring to black colour eggs although salmon eggs (orange in colour) is refer to as caviar as well

Basically from my understanding Caviar is used as topping in foods like what we eats in Sushi restaurants.

Even tough it is very difficult to catch Sturgeon fish but once you are manage to catch it, it can make you rich as Sturgeon fish can reach up to 100kg in weight which means a lot of money can be earned by selling its Caviar.

Unfortunately due to its high demands, people keep on hunting this fish on daily basis which means there is no room for breeding of new generation to happen. The extinct sign of this type of fish finally arrive and most countries including Iran, USA etc now legal action control to ensure the few more fish left are allowed to breed and protected from being catch-ed. Luckily there is still Caviar that you can buy or taste in restaurant which comes from different type of fish.

ISo are you interesting to try it out? Hmm... I am not, due to its colour... (I am referring to the original Caviar which is black)