Binary Options Islam

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Binary Options Islam

Posted on by John Thiel

Since I have no prior knowledge of the Quran I have collected information regarding Islamic law or Shariah from various Islamic sources and attempted to reach a conclusion about binary options being Halal (permissible) or Haram (Banned). The two main arguments Islamic religious authorities had against binary options trading are as follows: 1. According to Mufti Ikram ul Haq from the Fatwa Center of America binary options (all or nothing digital options) trading is Haram because it involves a large degree of uncertainty (risk in financial terms). In the Shariah this is called  “Gharar” and is prohibited. 2. Muslims are not allowed to …

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How to Invest in Gold When Trading Binary Options

Posted on by John Thiel

It’s common knowledge that commodities are used in order to minimize risk and as a way to diversify the stock portfolio because they are considered to be a relatively low risk form of trading. But why do investors flock to the gold during times of high volatility? I mean you have Copper, Corn, Silver, Oil, & so on…The answer is simple, as opposed to other commodities, lets say oil for example that is more prone to market demand and fluctuates accordingly, gold is a sure way for investors to make sure their money keeps its value and is not devalued …

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How to Use a Naked Put in Binary Options Trading

Posted on by John Thiel

The classic Naked Put definition refers to a scenario when a writer owning a put option does not have a short position in the stock on which he’s written the put. This situation is also known as an “uncovered put”, and the level of risk is very high because the profit is limited to the premium received at the time the option is sold. I have seen a lot of novice traders lose a lot of money because they do not know how to manage risk properly. I have two friends who trade binary options on a regular basis and I …

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