Derivatives
Are binary options halal?
Impermissible
Read our methodology and editorial policy.
Summary
Binary options are impermissible by consensus. They are pure all-or-nothing bets on a price outcome — the textbook structure of maysir (gambling).
The reasoning
A binary option pays a fixed amount if a condition is met and nothing if it is not. There is no asset exchanged, no commercial activity, no risk-sharing — only a wager.
Multiple national regulators (US, UK, EU) have banned retail binary options entirely on consumer protection grounds. The shariah verdict is even clearer: this is gambling.
Scholar citations
"Impermissible — pure maysir"
Assembly of Muslim Jurists of America (AMJA)— Collective fiqh body
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