It is often a question, is trading halal? As Muslims, we should know the answer. Moreover, the topic is often debated whether it is allowed in Islam or not. Instead of getting curious, check out the following review of halal vs haram trading.
Halal Trading vs Haram Trading Explained
Trading is the process of buying and selling assets for profit in the capital market. But is trading halal? Not all trading is halal in Islam. Based on the basis of the fatwa of the Indonesian Ulema Council on Islamic capital markets no: 40/DSNMUI/X/2003, the terms of halal stock trading or allowed if the shares traded are not tied to haram food and beverage companies, gambling, producers or services that are mudarat, and the transaction process must comply with the provisions of sharia contracts.
When talking about haram trading, it means any trading process that does not comply with the foundation of sharia economics and violates Islamic financial principles such as usury (interest), ghahar (uncertainty), gambling, and manipulation. As Muslims, we should be more aware and understand halal trading vs haram trading.
Read also: Rising Concerns: The Dangers of Online Loans and Their Status in Islam
Qur’an & Hadith Explanation of Economic Transactions in accordance with Islamic Financial Principles
Allah always reminds us, in financial transactions in Islam must uphold justice and reject usury so that no other party is harmed. Followed by the explanation in the hadith, “The Messenger of Allah s.a.w. forbade buying and selling (which contains) gharar” (HR. Al Baihaqi from Ibn Umar), which shows that the Prophet prohibited economic practices or buying and selling transactions that refer to uncertainty or uncertainty because there will be parties who are harmed.
So, if we transact stock trading must follow the principles of Islamic finance and refer to the explanation of the Qur’an and hadith above. The hope is that the shares traded are clear and in accordance with the provisions of the sharia contract.
Benefits of Knowing Halal Trading vs Haram Trading
The benefit that we get after knowing halal trading and haram trading is that it increases our vigilance in investing. We do not only think about profit but whether the economic activities we carry out are in accordance with Islamic law or not.
Thus, knowing the issues related to halal trading in Islam is very important so that we always carry out economic activities in accordance with religious teachings, avoid sin, invest according to sharia principles, and get blessings from Allah SWT.