Is it permissible to continue speculating in Forex to recover capital after a loss and then stop?
Dealing with the Forex system involves شرعية (-compliant) prohibitions such as: usury due to overnight fees, combining a loan and brokerage (represented by the margin), and the lack of immediate قبض (seizure/possession) between currencies. For this reason, the Islamic Fiqh Academy has forbidden it. It is permissible to deal with it if these prohibitions can be avoided, and this is only achieved by avoiding the margin and trading with one's own money, while observing immediate قبض (seizure/possession). If the prohibitions cannot be avoided, then it is not permissible to deal with Forex, and whoever has dealt with it must repent and withdraw. It is not permissible to continue in order to compensate for losses.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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