Derivative
Is Binary options halal?
Not permissible
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Short answer
Binary options pay a fixed amount if a condition is met and nothing otherwise. There is no asset transfer, no productive economic activity, and the payoff structure is gambling by another name.
The reasoning
All major contemporary fiqh bodies classify binary options as maysir. Regulators in the EU, UK, and many other jurisdictions have also banned them on consumer-protection grounds.
Red flags
- Any 'high-low', '60-second', or fixed-payout product.