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The question

Is it permissible to use the investment method that grants a leveraged loan from the application, provided that the loan is repaid before eight hours pass to avoid usury?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Trading with leverage (margin) is prohibited because it is a loan that yields a benefit (a commission for the application), and this is usury (riba), based on the Almighty's saying: ﴿O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger﴾. And based on the Prophet's ﷺ saying: "A loan combined with a sale is not permissible." Also, a loan that stipulates an increase upon delay is prohibited due to the explicit usury involved, represented by "overnight fees." As for investing in stocks, the stocks must be -compliant (pure).

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16489
Imported
Translation status
Source text, unreviewed
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