Is forex haram in Islam?

Excessive speculation, known as gharar, is also considered haram in Sharia. This refers to transactions where the terms or outcomes are uncertain and subject to excessive risk, often leading to unfair outcomes for parties involved.

Forex trading, a popular form of financial speculation, can potentially fall into the category of haram transactions if it involves any of the prohibited elements mentioned above. If forex trading involves interest-based transactions, gambling, or excessive speculation, it would be considered unethical according to Sharia law.

Cryptocurrency and finance are intricate fields that intersect with various religious and ethical frameworks. In the context of Sharia law, certain financial transactions are deemed unacceptable or haram. These prohibited transactions typically involve elements that are considered unethical or exploitative.

One such prohibited element is riba, which refers to the charging of interest on loans. In Sharia, interest-based transactions are considered unfair and exploitative, as they involve the lender profiting from the borrower's financial need.

Another prohibited element is maisir, which pertains to gambling activities. Gambling is deemed unethical in Sharia as it involves risk-taking for the sake of personal gain, often leading to financial loss for the majority of participants.