Trade

Q:

1. I want to say one more thing here that trading in gold online is a forex trading. It is like shares of gold. If I buy it, I will get like gold lots/shares (electronic form) and when I will sell it, my broker will sell those shares (gold lots) to forex. and I will get money. So gold rate in forex are changing by international market rates. And I am not selling these electronic gold every day, it will be once in a month or after 15 days. Mean it is not like everyday game as I saw shares are not allowed if done on daily basis but long term are permissible in Islam.

2. As or the possession, I am believing that if I have gold or as form of shares in my electronic account, I have possession of it and when my broker sell to other company, possession is given to the new buyer or forex company. And if you emphasize that physical possession is necessary, can you please tell me in the shadow of hadith or Quran verses where it is clearly mentioned that physical possession or just possession?

3. What is the punishment of eating Haram on day of judgement? Is it depends on Allah will? Like many sins will depend on Allah, if he wants, he will forgive them but the sins like haqooq al ibaad, only we need to clear them with other people.

Q: Salmaan owns a grocery store. Ismail phoned him and purchased a pack of long life milk from him. After concluding the sale on the phone, Ismail did not take possession of the milk but instead sold the milk to Bakr and asked Salmaan to deliver the milk directly to Bakr instead of bringing it to his store. Is it correct for Ismail to sell the milk to Bakr before taking possession of it?

Q: It is right, you can't sell what you don't possess. But in online trading you actually not dealing with any party directly. It is new technology and electronic trading. The possession of gold is in electronic form. I have a lot of gold I purchased and I can sell that gold through a broker to any person in the world. The electronic possession of gold will be given to the other person and the cash transfer will also take place and I will get my money (profit or loss) through the broker and the person who is buying will also pay the broker. You are not deceiving or lying to anyone. You deal with the broker directly and the broker is known to every trader. In online trading with broker, actually you get possession of that thing in a system which we are going to sell. Every buy should be closed with selling and every selling should be closed with buying. It is new technology online trading. Buying something itself in the system has the physical possession which is online possession because as I sell it, it becomes changed to money which I get (profit or loss). A more easy example is, there is one dealer who is taking care of my gold, and I say him to sell my gold, and he gives me money back. If I want more gold, I purchase and keep with him, which he takes care online (broker). In broker record, I have the possession of that gold electronically (but not physically). I don't see my gold physically but electronically I have possession of that gold and when I want to sell it, I get my money back. In my understanding, in physical business why you can't sell something until it comes in possession because that thing can be defective or have flaws and if you sell, the other person will have a disadvantage and it comes with deceiving and lying. Here you are not deceiving or lying to anyone. It's like a knowledge and study. Good performer gains money and bad performer loose money or depends on the gold market price rates.

Q: There is a company that carries out gold trading. I will pay them some amount and they will open a gold account for me. Gold rates are linked with the real gold rates which are current internationally. When I buy gold from my money, this gold is not physical. Rather, it is just the value of the gold that reflects. If I want to sell that gold, I can get my money back (not the gold) to my account. It could be profit or loss.

Q: Is it permissible to purchase extended warranty?

Q: Is it permissible to purchase extended warranty?

Q: Is it permissible to purchase extended warranty? If it is not permissible in Shari'ah, then what is the reason for the impermissibility?

Q: Certain Muslim restaurants have made it a rule that a 10% hospitality fee (tips for waiters) must be paid over and above the bill. In some cases, it is clearly indicated on menus and notices, and in others, it is not advertised. Is it Islamically correct for restaurants to charge this fee? We, the customer, have no choice in paying this additional tip if we decide to eat there.

Q:

1. Is it correct to give tuition to students studying at secular universities? It would involve a male giving tuition to other males only.

2. Is it correct to sell the notes, past papers and textbooks etc. for certain subjects at secular universities?

3. Is it correct to sell the notes, past papers and textbooks etc. for certain subjects at secular correspondence universities (like Unisa)?

All three questions above relate to permissible subjects viz., mathematics, accounting and computer programming.

Q: I am visiting Argentina for a month. I have come across that the Peso Dollar official rate and black market rate to be very different. The official rate is around 8 pesos while the black market rate is around 15 pesos. Is it permissible for me to change my dollars in the black market? Someone told me that it is not permissible because its a type of riba and cheating and going against the law of the country. Please advise.