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Question:

Assalamuelaikum,
I have question regarding to some gold online business trading. Trading is without any interest.
If I open an account with some money, I will buy gold which is online market rate. Gold rates are linked with the real gold rates which are currently internationally. In beginning I have to decide how much risk (profit or loss) I can take in the business. Depending on that I can get profit or loss percentage, risk can be 30 %, 50 % or 100 %
When I buy a gold from my money, I buy a lot of gold and then this gold is not existing physically. Mean the gold purchased is from the money and if I want to sell that gold, I can get my money back of same gold worth (not the gold), to my account. It could be profit or loss. In other words, gold I purchase from money and I get my money back but in real gold is not existing but the gold price is linked with money.

Here is more detail about that business:
In online trading of gold you are using modern way of trading where you don’t have to go market and do buying and selling. You just open your laptop connect your self to the international market. In an international market all over the world buyers and sellers are sitting. No one knows each other. All buyers and sellers they use their knowledge. Some do gambling and some do buying and selling without any knowledge or with analysis/study of market.
Now if you have right knowledge right technical and fundamental analysis and you use patience and do money management and risk management then you are successful in making more profits than looses. Means looses gets minimized due to money management and risk management skills. You see prices of gold keep on fluctuating every minutes. You see 5 min charts, 15 mins charts, 30 mins charts, hourly, 4 hours, weekly and monthly charts then you analyze trend and put your trades with calculation of upper limit range n lower limit range according to your capital size. You see macd indicators..stoch indicators..resistance support indicators..moving price averages
5 day moving average, 10 day moving average, 50 day moving average, 100 day moving average, 200 day moving average and these averages keep on changing in every hour, every day, every week and every month. World events and financial news , demand and supply keep changing the prices. And its a vast vast knowledge. Then their comes candlesticks patterns, Japanese candlesticks, analyzers shadows. These all are kind of subjects. After using all these combinations of all these subjects before placing trade and then placing my upper limit to take profit and lower limit to take loss which is basically risk percentage of whole amount.
Please guide me accordingly if it is Halal or not with proof and reasons.
Thanks.

Answer:

السلام عليكم ورحمة الله وبركاته
حامدًا وّمصليًا وّمسلمًا
In the Name of Allaah, the Most Gracious, the Most Merciful

To understand the answer to your query we would like to appraise you with the following important rulings of Shariah;
According to the Fuqahaa [Islaamic Jursits] when purchasing gold with gold both the buyer and seller must take physical or constructive possession of the commodities, otherwise such a transaction will be classified as Ribaa [interest].
Similarly both the gold of the buyer and seller must be the same weight.
When purchasing gold with currencies at least one commodity has to come into the physical or constructive possession of the buyer or the seller or the one representing any one of them.
The Fuqahaa have also mentioned that for a transaction to take place the item has to exist physically.
Since, in your query you had mentioned that the gold does not exist physically, likewise we understand that possession of the gold or currency does not take place when purchasing gold online and the mere reflection of money in an account does not constitute possession which is required by Shariah so as to the purchase of gold, thus, we therefore conclude that it will not be permissible to trade gold online.

Ref:

  1. بيع الثمن بالثمن جنسا بجنس أو بغير جنس (كذهب بفضة) ويشترط عدم التأجيل والخيار و(التماثل) اى التساوى وزنًا (والتقابض) بالبراجم لا بالتخلية (قبل الافتراق) …. (والا) بان لم يتجانسا (شرط التقابض) لحرمة النساء {رد المحتار على الدر المختار ج5 ص258-259- باب الصرف، كراتشى}
  2. لو باع فضة بفلوس فانه يشترط قبض أحد البدلين قبل الافتراق لا قبضهما كما فى البحر {أيضًا
  3. وبيع الفلوس بالدراهم ليس بصرف {مبسوط للسرخسى ص24 ج14- مكتبة دار الفكر – فتاوى محمودية بتخريج مفتى محمد فاروق عليه الرحمة ص258 ج24}
  4. من شروط صحة البيع القبض فى بيع المشترى المنقول ، فلا يصح بيعه قبل القبض لما روى ان النبى عليه الصلاة والسلام نهى عن بيع مالم يقبض لما روى أن النبي عليه الصلاة والسلام نهى عن بيع مالم يقبض، والنهى يوجب فساد المنهى، وتمامه فى {بدائع الصنائع فى ترتيب الشرائع، شرائط الصحة ص394 ج4- مكتبة رشيدية}
  5. بيع المعدوم باطل فيبطل بيع ثمره لم تبرز أصلًا {المجلة ص42، الفصل الثانى، فى ما يجوز بيعه و ما لم يجوز، مادة 205}

And Allaah Ta’ala knows best

Answered by:
Musayyab Sahib
14th Rajab 1437
22nd April 2016
Checked and Approved by:
[Mufti] Muhammad Irshad Motara

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