Is binary options trading halal?
The two main binary options are the cash-or-nothing binary option or the assets-or-nothing binary option. In this mode of trade there is an uncertainty because either you will get a lot of profit or nothing at all. This is known as "Gharar" in Islamic law. Gharar or uncertainty is not allowed in trade under Islamic rules.
Therefore, this kind of trade which is known as binary trade option is not allowed.
And Allah knows best.
Mufti Ikram ul Haq
Fatwa Center of America