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Trading rulings

Is margin trading halal?

Answered by the ShariaQuant team

No. Margin is a loan, you pay interest on it by the hour, and that is riba in its clearest form. Even the versions advertised as interest free fail, because the lender still keeps the right to liquidate your position on their terms, which is not a loan any Islamic contract recognises.

The loan nobody calls a loan

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

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