When is financial leverage permissible in Forex? Is it permissible to adopt the view of Their Eminences, the two scholars Abdullah bin Jibreen and Abdullah bin Manie, regarding the permissibility of financial leverage on condition that there is no increase in the repayment?

The Islamic Fiqh Academy issued a resolution prohibiting and forbidding margin trading (financial leverage) due to the Shariah prohibitions and corruptions it entails, the most important of which are:

1. Explicit Usury (Riba): This is represented by the increase on the loan amount (overnight fees), which is religiously forbidden usury. 2. Combining a Loan with a Transaction: The broker’s condition that the client's trading must be through them leads to combining a loan with brokerage, which is prohibited. 3. Inclusion of Forbidden Contracts: Trading in global markets often includes trading in forbidden bonds, shares of prohibited companies, selling currencies without legal possession (qabd), options and futures contracts, and selling what one does not own. 4. Economic Harms: It causes economic harm to participants and society, and is based on risk-taking, deception, and consuming wealth unlawfully.

In addition to what Sheikh Yusuf Al-Shubaili mentioned regarding the prohibition of buying currencies on margin, due to its inclusion of:

1. Fictitious Contract: Transactions are conducted on amounts that are not real, because the broker does not actually own the amount allocated to the client. 2. Lack of Legal Possession (Qabd): Accounting entries do not achieve the real possession required in currency exchange. 3. Loan Drawing Benefit: The broker benefits from the loan a stipulated interest from buying and selling commissions, which is a prohibition against a loan and a sale.

Therefore, it is not permissible to engage in margin trading, and a Muslim must avoid doubtful matters and seek permissible methods of financing.