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Options Trading In Stock Market
Assalam u alikum. I want to know your opinion on options trading. Is it ok to do that. Also, is it ok to buy shares of a bank or any other business as we’re not benefiting from the business but just buying and selling the shares.
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1 Reply
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Options Trading In Stock Market
updated 5 years, 5 months ago
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As far as options trading is concerned, these are simply legal contracts between two parties, whereby one party (buyer) is given an option to buy a certain number of shares of a company from another party (seller) at or before a certain date. In principle, there’s nothing objectionable about the transaction.
When we buy a share of a bank, we become part owner in the organization. Since banks earn their revenue from riba based transactions, trading bank stocks (or any types of securities of any organizations that derive their revenue through immoral means) can’t be considered permissible.
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