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?
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).
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- Ftawy
- Original fatwa ID
- 16489
- Imported
- Translation status
- Source text, unreviewed
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