The First Topic: Definition of the Margin System
The margin system involves the buyer (client) paying a small portion of the value of what he wishes to purchase, referred to as the "margin," while the intermediary (whether a bank or otherwise) pays the remaining amount as a loan, provided that the purchased contracts remain with the intermediary as a guarantee for the loan [449] - See: "Islamic Fiqh Council,  Resolution No. 102 (1/18": Regarding Margin Trading. .
The Second Topic: A Jurisprudential Ruling on Currency Exchange via Margin System
Currency exchange via the margin system [450] - The margin trading system includes the following: 1.      Trading: The buying and selling with the intention of profit. This trading often occurs in major currencies, financial instruments—such as stocks and bonds—or certain types of commodities. It may also include options contracts, futures contracts, and trading in major market indices. 2.      Loan: This refers to the amount provided by the broker to the client directly if the broker is a bank, or through another party if the broker is not a bank. 3.      Riba (Usury): This occurs in this transaction through overnight fees, which are the interest charged to the investor if he does not act on the transaction on the same day. This may be a percentage of the loan or a fixed amount. 4.      Commission: This is the amount the broker receives as a result of the investor-client's trading through him. It is an agreed percentage of the value of the sale or purchase. 5.    Collateral: This is the commitment signed by the client to keep the trading contracts with the broker as collateral for the loan amount, granting the broker the right to sell these contracts and recover the loan if the client's losses reach a specified percentage of the margin amount, unless the client increases the collateral to cover the drop in the commodity's price.              See: "Islamic Fiqh Academy Resolution" No. 102 (1/18): (Regarding Margin Trading). is not permissible, as established by the resolution of the Islamic Fiqh Council of the Muslim World League [451] -It was stated in the Islamic Fiqh Council Resolution No. 102 (1/18) regarding margin trading: 'The Council sees that this transaction is not permissible according to Islamic law.'"       Source: "Islamic Fiqh Academy Resolution" No. 102 (1/18). , and as decided by the Fatwa Committee in Jordan [452] -"In a fatwa issued by the Fatwa Council in Jordan, it was stated: 'Trading in currencies through the Internet, commonly known today as 'margin trading', is prohibited according to Islamic law for various reasons. Among the most important is that the buying and selling of currencies often occurs without any legal or actual possession. Furthermore, the benefit gained by the intermediary company arises from lending the client the amount in which they are trading over the deposited money. Scholars have unanimously agreed that any loan that generates profit is considered riba (usury).'" Source: "Al-Maqa' al-Rasmi" by "Lajna al-Iftaa' in "Urdun" – (Fatwa No. 645). .



This is for the following reasons [453] - "These evidences are mentioned in the resolution of the Islamic Fiqh Academy, Resolution No. 102 (1/18), regarding margin trading." Reference: "Majma' al-Fiqh al-Islami, Resolution", No. 102 (1/18).   :
Firstly: Because it involves explicit usury, which occurs in this transaction through "overnight fees," being the interest stipulated on the investor if he does not engage in the transaction on the same day, which may be a percentage of the loan or a fixed amount.
Secondly: Because requiring the intermediary to make the client's trade through him leads to a combination of a loan and a fee (brokerage), which is akin to combining a loan with a sale, which is prohibited by Islamic  Jurisprudential Ruling; thus, he has benefited from his loan, and any loan that brings benefit is considered usury according to the consensus of scholars.
Thirdly: Due to the absence of legal possession of usurious items; the buying and selling of usurious items (currencies, gold, or silver) often occurs without the legal possession required to permit such transactions.
Fourthly: Due to the economic harms that this transaction entails for the parties involved, particularly the client (investor), and for the economy of society at large; as it relies on the expansion of debts and recklessness, and often involves deception, misinformation, rumors, hoarding, speculation, and rapid fluctuations in prices aimed at quick wealth accumulation and illicit acquisition of others' savings, which constitutes unlawful consumption of wealth; in addition to diverting funds within the community from productive economic activities to these unproductive speculations, which could lead to severe economic shocks that inflict significant losses and damages on society.
Fifthly: It involves prohibited contracts; these transactions often include many contracts that are religiously forbidden, including:
1. Trading in bonds, which is usury prohibited by Islamic law.
2. Trading in company shares without distinguishing shares of companies whose primary purpose is prohibited or whose transactions involve usury.
3. Trading in options contracts and futures contracts; as the subject of the contract is neither wealth, nor benefit, and not a financial right that can be exchanged for something else, and the same applies to futures contracts and contracts based on indicators.
4. In some cases, the intermediary sells what he does not own, and selling what one does not own is religiously prohibited.