Continuing to be a polemic and debate, actually, what is the law of trading robots in Islam? You can find out more information in this one article!
- There are many formulas and analyzes that must be studied in trading , so that the activities are not just speculation, nor are MUI considered haram.
- Trading robots are considered to be nothing but speculation ( ghahar ), whose activities are clearly prohibited by the Prophet Muhammad.
- Trading robots are illegal if traders do not fully understand how trading robots work .
Trading Robots in the Eyes of Islam
“Actually, what is the law on using trading robots in Islam? Is it really forbidden?”
One of the benefits and advantages that can be directly felt from the rapid development of technology is the ease of increasing income.
Money through the internet is now not only done by people with certain privileges , but almost anyone can do it.
There are many ways that can be chosen and done, one of which is by utilizing forex trading. Forex trading itself is one type of investment related to exchange rates or international currency prices (foreign exchange).
In practice, forex trading allows traders to buy currency when its value is low and sell currency when its value is high.
Well, the difference between the buying price and the selling price is what gives traders an advantage . This term is usually referred to as capital gains .
This trading activity , for some ordinary people, is considered a lot like gambling, because they think that trading is just speculation.
Not only that, it is not uncommon for people to think that this trading activity is very easy, because traders only need to wait for the price to drop after setting the price.
Just move your feet, then let go when you go down, and get profits up to many times the capital.
Even though trading is not that easy, there are many formulas and analyzes that must be studied, so that the activities are not just speculation, nor are MUI considered haram.
This is exacerbated by the emergence of trading robot technology that makes the task of traders easier.
Not a few companies claim that their trading robot is able to make transactions automatically even though it is not accessed by the trader .
This point then became a hot topic between traders and scholars, because trading robots were considered to be nothing but speculation ( ghahar ), whose activities were clearly prohibited by the Prophet Muhammad.
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The Law of Trading Robots in Islam
Ustaz Muhammad Syamsudin, Researcher in Islamic Economics at Aswaja NU Center PWNU East Java, answered this concern through the official islam.nu.or.id website .
He said, basically every muamalah transaction practice , the original law is permissible.
It is not prohibited, as long as the mechanism or process is acceptable to common sense and complies with the requirements of the Shari’a.
From Abul Mudlaffar as-Sam’ani, Qawathi’ul Adillat Fi Usul, juz 11, p. 152, reads:
“The law of origin of a muamalah contract is that the meaning of the contract is usually accepted by common sense, except when the Shari’a has set its limits as ta’abbudi (subject to the provisions of the Shari’a), so that it is obligatory to participate in total without being allowed to go beyond the limits that have been set.”
Transaction licensing limits are if the following practices are not included in the contract:
- Gharar, or fraud due to not knowing the price and the goods being transacted.
- Ghabn, or cheating or concealing defects, including incidental costs.
- Ghisy (deception) and tadlis (falsification)
- Riba , or eating other people’s property vanity)
- Jahalah, or do not know the pattern of transactions and contracts
- Maisir, or gambling/speculation.
Meanwhile, according to Ustaz Muhammad Syamsudin, trading robots are a medium to communicate between traders and admins who act as traders ‘ representatives in the stock market.
So, in carrying out his duties as wasilah, the party who applies muta’aqidain, or he who transacts is the trader and his representative, not the trader with the machine.
Meanwhile, the legal requirement for a representative contract is if the appointment of the representative is carried out by a party who meets the criteria for aqil baligh .
“The condition for representatives and those who represent is the ability to appoint representatives and become representatives. The language of delivery of the contract must be in the form of pronunciation (information) that shows the meaning of the permission of each party in narrating assets through a sale and purchase contract. (Al-Qashthalani, Irsyadus Sari li Shahihil Bukhari, juz IV, page 281).
In fiqh, trading robots occupy the position of information conveying instruments between muwakkil ( traders) and their representatives ( admin). Meanwhile, from an instrument perspective, this is like a trader blowing the whistle with Morse code. The whistle in this case occupies the wasilah degree.
Then the resulting password is the language of information that is captured by other people who receive the message.
The trader, when accessing the trading robot , seems to be blowing the whistle, because he first sets the margin, lot, leverage, spread, and the like.
These things then become information or signals to the trading robot , provided that the ‘blowing’ is directed and not random.
Therefore, the most important thing is how the trader, who conveys the information. Did he really understand the characteristics of the autopilot robot ‘s language before using it?
If the answer is no, then this is no different than a mere speculative practice, because there is an element of self-awareness to the instruments he accesses.
This case then makes the use of trading robots illegal. It is different if the trader understands the trading robot , because the meaning can turn into information that is conveyed to the admin who then acts as an executor in the stock market. So it’s not forbidden.
So, the conclusion that can be drawn is, trading robots become haram if traders do not fully understand how trading robots work .
Because of this ignorance, they can plunge themselves into the practice of maisir or chance, which of course is haram.
Supposedly, this trading robot is a wasilah or instrument, whose job it is to convey information only. Useful or not, depends on how knowledgeable the trader is.