Title: Margin Trading in Islam Question: I'm working in excel financial private ltd and my question is that margin trading is allow in Islam? means we take position. Buy/sell commodities but there is no physical delivery. For example if we buy single lot of gold which equals to 100 try ones worth 40,00000 but we pay only $2000 (US DOLLARS). And when we sell this lot in profit or loss $2000 is return back to in my account . So that is allow in Islam or not? Please reply as soon as possible. Answer: The enterprise you have explained is business; business is not forbidden in Islam. There is nothing in the Shari'ah (Islamic Law) that says anything about actual work or physical exchanges having to be made for a business to be valid. There are some people of the opinion that if one does not do manual labor it is not valid as a form of work or business. This opinion is not sound and does not remotely emanate from the Shari'ah; it is purely an opinion not based on religious doctrine. No one may forbid what God has not forbidden and trading falls into this category. I hope I have clarified the issue. God knows best. Ronnie Hassan January 23, 2007