I would like to know whether Forex currency trading is halal, the way its been done is you predict the up or down , profit/loss depends on that, physically money should be in the account to cover the loss. Hedge fund and option trading is that halal or not.

Alhamdu Lillah

1- Forex currency is a remote or distant currency exchange, with a broker as a third party between the buyer and the seller.

Currency exchange is permissible if the transaction is effective immediately (not a future sale) and the two currencies are mutually submitted (by the buyer & the seller) without any intentional delay. Another condition must be added nowadays, which is the avoidance of leverage or fractional reserve, meaning that trading must be in real money and not only depositing 1% of the actual amount and trading digitally in the remaining 99% without possessing the money as many financial institutes do.

2- Hedge fund is a high-risky trading and speculation. It is permissible if the traded-in securities belong to a Halal business, while the securities themselves are either stocks or shares only. Bonds

3- Derivatives include forwards, futures, options, and swaps are not allowed, because their values are derived from the value of the underlying assets they are derived from, while they do not have an intrinsic-value. Meaning; they do not reflect any commodities or services. Worse then that, trading in them involves a lot of ambiguity and uncertainty.