Why are binary options considered religiously forbidden, with a mention of some of the differences between them and what was stated in Fatwa no. 188587, what Dr. Sami Al-Suwailem said, and what Al-Azhar decreed?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Binary options are based on (excessive uncertainty), and rely on luck, risk, and gambling. Therefore, options in their current form on exchanges do not fall under any of the recognized legitimate Islamic contracts. They are accompanied by excessive gambling and risk-taking, and are void due to the absence of a specific underlying asset for the contract. Furthermore, they are not considered valid contracts; rather, they are a means to attract clients in financial markets through luck, risk, and gambling.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/133406
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- Ftawy
- Original fatwa ID
- 133406
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy