What is the ruling on binary options trading, which is widespread online?

The options contracts known in the stock market, such as call and put options, are Islamically invalid and forbidden. This is because the underlying asset is neither a tangible asset, nor a usufruct, nor a financial right that can be compensated for. These contracts are considered gharar (excessive uncertainty) and gambling, where one party profits at the expense of the other, and they do not allow for both parties to profit. The International Islamic Fiqh Academy issued resolution No. 63 to this effect. As for ordinary buy and sell contracts for shares, they do not involve any Islamic prohibition.