Is forex trading halal or not?

The permissibility of Forex trading in Islam is a subject of debate among Islamic scholars. Some consider Forex trading to be haram (forbidden) due to its speculative nature and the possibility of incurring riba (interest), while others consider it to be halal (permissible) under certain conditions. According to the majority of Islamic scholars, Forex trading is permissible as long as it is conducted with a profit and loss sharing agreement (PLS), where the trader shares in both the profits and losses of the trade. The PLS agreement ensures that the trader does not earn interest, which is prohibited in Islam. Additionally, Forex trading must also be in accordance with the principles of Islamic finance, such as transparency, fairness, and the absence of speculative and unethical practices. In conclusion, the permissibility of Forex trading in Islam depends on the interpretation of Islamic scholars and the application of Islamic finance principles. It is important for Muslim traders to research and understand the Islamic perspective on Forex trading before making any decisions.