Developing Options Trading Software
Posted: 18 Dhul Hijjah 1430, 5 December 2009
Q.I work in a software house as software engineer. We build software product for NYSE, CBOE etc. The product is used to create orders for equity and 0ptions. There are also other functions in the system as well related to the trading.
The product is only used for operations related to order creation and routing. There is no risk management, interest management or any other such management involved in it. Although one component of the system is involved with commission calculation and allocation of shares at end-of-day of the trading. Please note that the same product is also used for equity trading.
Now I have read that option trading is not allowed in Islam, so I want to know if building such software products for option trading would be halal or haram? And salary earned by such work would be halal according to Islam?
A. Building such software with the intention that it be used for option trading is not permissible and must be avoided. However, if the software has a dual purpose and can be used for permissible activities, then it is permissible to develop the software and market it for its permissible use. Thereafter, if an individual or company uses it for any impermissible activity, the responsibility of the same will be solely upon the user.
And Allah Ta'ala Knows Best