Is It Permissible to Work as a Developer on an Options Trading Platform?

Answered by Shaykh Muhammad Carr

Question

Is it permissible to work as a developer on an options trading platform, given that options trading involves elements of riba, risk (gharar), and gambling (maysir)? Would participating in such a project render me sinful, as it contributes to a prohibited activity, even if I cannot guarantee Shariah compliance?

Answer

Thank you for your question. May Allah reward you for ensuring that your services are per Islamic Law.

Allah says, ‘And aid one another goodness and godfearingness and aid not one another in sin and transgression’. [Quran  Web development, in itself, is permissible. However, in this context, your service contributes to aiding in sin and transgression.

Maintaining software facilitating options trading is impermissible, and such a service contract is deemed null and void. [See: Ibn Hajar, Tuhfat al-Muhtaj]

Similarly, developing software specifically designed for options trading is also impermissible, rendering the contract null and void. [Ibid]

However, developing general-purpose software for an options trading platform, even if it may be used for prohibited activities, is impermissible in principle. Nevertheless, the contract itself remains valid. [Ibid]

Maintaining Software Associated with Impermissible Activities

Maintaining software facilitating options trading is impermissible, and the service-level contract is deemed invalid. This is because the prohibited activity supported by the software occurs simultaneously with its maintenance. This situation is analogous to selling weapons to someone actively at war with Muslims. The state of being at war (haraba) exists at the point of sale, making the transaction both impermissible and null and void.

Developing Specialized Software

Similarly, developing software specifically designed for options trading is also impermissible, rendering the contract null and void. This is comparable to selling crosses, which is prohibited. ‘A’isha (Allah be pleased with her) reported that the Prophet (Allah bless him and give him peace) did not leave anything in his home bearing crosses without erasing or breaking it. [Bukhari] In the Shafi‘i School, the sale of crosses is not permitted, as they are treated like idols. [Refer: Shirbini, Mughni al-Muhtaj]

Developing General Purpose Software

Developing general-purpose software for an options trading platform that may be used for prohibited activities is, in principle, impermissible. However, the contract itself remains valid. This is analogous to selling weapons to a highway robber: the sale, in and of itself, is valid because the sin is not directly tied to the act of sale but rather to the subsequent use.

Nonetheless, it remains impermissible due to aiding in sin and transgression. While the prohibitive element does relate to the subject matter of the sale it is not found at the time of the sale. This contrasts with case 2 above, where the prohibited quality is intrinsic to the subject matter and is present at the time of the sale.

I pray this is of benefit and Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.