Futures, Options and Short Selling

Short answer: Evidence-based scholars and fiqh academies have ruled: (1) short selling — selling what you do not own — falls under the express prohibition of the hadith: impermissible. (2) Conventional futures/options — both counter-values deferred, the contract itself traded, the sole object being price difference — impermissible for gharar and gambling-likeness. (3) Zakat: your actual equity value at the brokerage, including margin/premium locked in such positions, enters the reckoning on your zakat day — the sin of the contract is one matter, the zakat of the wealth another. Evidence: 'Do not sell what you do not have' — Abu Dawud 3503, Tirmidhi 1232 (sahih per al-Albani); Sahih Muslim 1513 (gharar); Quran 5:90 (gambling); the International Islamic Fiqh Academy (Jeddah) and contemporary evidence-based scholars on conventional derivatives. Application: Unwind such positions and return to halal spot-ownership investing. Divest derivative profits with repentance, given away without expecting reward — not as zakat; your capital remains yours and zakatable as usual. For complex individual cases, consult a qualified scholar.