P-ISSN: 2808-5957
E-ISSN: 2808-6724
ijoms.internationaljournallabs.com
1202
MAYSIR ELEMENT ANALYSIS IN BINARY OPTION PLATFORM CASE
STUDY OF IQ OPTION APPLICATION
Baldad Muhammad Syarifati
1
, Maya Panorama
2
Universitas Islam Negeri Raden Fatah Palembang, Indonesia
Email:
syarifati.official@gmail.com, mayapanorama_uin@radenfatah.ac.id
ARTICLE INFO
ABSTRACT
Date received : 30 June 2022
Revision date : 14 July 2022
Date Approved : 21 July 2022
Binary options or more often referred to as binary options are
financial instruments that are not very familiar to the public at
first. However, it became familiar in the community after the
recent viral case of fraud under the guise of investment was
revealed. This study aims to analyze the elements of gambling
(maysir) in the binary options platform. The method applied in
this study is a normative legal approach using qualitative
methods derived from secondary data. This study examines
binary options using the desk research method. Secondary
research or desk research methods are research methods
whose analysis is through comprehensive library research from
secondary industrial data and academic sources. Based on the
systematic transaction in the binary options platform, we
consider that the practice of binary options contains elements
of gambling, namely; there are parties who bet (compete),
there are assets at stake, there are winning and losing parties,
and the winning party is entitled to the assets of the losing
party. This study concludes that binary options are financial
instruments that are identical to gambling or can be said to be
hidden gambling. This is because transactions on binary
options contain four gambling criteria that have been agreed
upon by the scholars.
Keywords: Binary Options;
Binary Options; Investation;
Binomo; Gambling; Maysir.
This work is licensed under CC BY-SA 4.0
INTRODUCTION
Today, a financial instrument has emerged that is becoming a topic of discussion
among the public, especially for those who are involved in the investment world. These
instruments are known as binary options or binary options. Binary options or more often
referred to as binary options are financial instruments that are not very familiar to the
public at first. However, due to a case of fraud under the guise of investment that was
revealed recently, involving affiliates of one of the platform's binary options, then this
instrument suddenly became a conversation in the information media in the country so
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1203
that the term binary option began to be known by the wider community. Several binary
options platforms such as Binomo, IQ Option, Quotex, Olymptrade, Oxtrade, and others,
were initially accessible via smartphones or computer devices with internet access. It's
just that the Commodity Futures Trading Regulatory Agency (CoFTRA) under the Ministry
of Trade of the Republic of Indonesia closed access to all binary options platforms on
February 2, 2022, and stated that the binary options platform is an illegal commodity
futures trading and gambling practice under the guise of trading
(Bappebti, 2022).
In 2006 Binary options were introduced widely at the Chicago Board of Options
Exchange (CBOE) press conference, which later became one of the financial instruments
that can be traded in 2008 (Kolkova & Lenertova, 2016). With the requirements for
opening an account that is not too complicated, coupled with a fair initial deposit value,
since then the popularity of binary options has continued to rise and be ogled by investors.
Most of the investors who join binary options are those who come from people who have
little knowledge about investing and also those who have limited capital when they start
investing in (Kolkova & Lenertova, 2016).
Binary options are financial instruments that provide an opportunity for investors
to gain profit by predicting the value of an asset within a certain period that has been
selected through the binary system (Hasanuddin, 2019). An investor is allowed to
speculate on asset prices that are volatile in a certain period. Beginning with a deposit of
an amount of money that is deposited on the online binary options platform, then the
investor can immediately determine where the value/price of an asset is going to be used
as an object of speculation, such as price movements of USD-EUR, GBP-USD, JPY-USD
and so on. From the initial deposit, investors are given two choices in determining the
price movement of an asset, namely "call" or "put", which is then accompanied by
depositing in the form of a contract against one of the options of the assets provided by
the platform (Puspitasari & Rachim, 2021). If the investor predicts that the price of an
asset will rise within a certain period, he will choose the "higher, on the contrary, the
investor speculates that the price of the asset will decrease in a certain period of time,
then he will choose the "lower. When the investor decides on one of the two options, he
must also deposit the nominal rupiah/dollar deposited at the beginning as a contract with
the binary options platform. If the result of the proposition that has been inputted by the
investor is correct - within the specified time period, then he will get the profit the
promisedIt's another thing if the results of the prepositions that have been placed by
investors before - are not correct - within a certain period of time, then the investor will
lose all the funds he has inputted when determining the prepositions (out of the money)
(Puspitasari & Rachim, 2021).
Islam with its plenary shari'a has forbidden and forbids its people to carry out all
kinds of transactions that contain elements of gambling (maysir). Allah SWT said:
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1204
“Oh you who believe! Surely liquor, gambling, (sacrificing to) idols, and casting lots with
arrows, are abominable deeds and include the deeds of the devil. So keep away from
them, that ye may prosper.”
In that verse, Allah SWT has included gambling in the category of rijsun min
'amalisy-syaithon, which when we translate into everyday language then gambling means
an act that is despicable, despicable, dirty, and belongs to the actions of the accursed
satan (Nugroho, 2018). So it is appropriate for a Muslim to stay away from all kinds of
transactions that are identical to gambling or similar.
The concept Maysir in Islam
Maysir
Linguistically, gambling sometimes has two names, sometimes it is called maysir,
and sometimes it is also called qimar, but the most commonly mentioned in the Koran is
maysir. In the context of literal connotation, maysir is taken from a root word which
means easy (Shihab, 2002). There are also those who argue that at first maysir defined
as a camel that was used as an object of betting then slaughtered and the meat
distributed, this was true during the period of ignorance (Nugroho, 2018). Departing from
this, then maysir is literally interpreted as a game with dice or pawns loaded with betting
elements.
Meanwhile, according to the term syar'i, maysir is al-qimar , namely everything
that contains elements of gambling (Rifa’i & Nasib, 2012). Yusuf Qardhawi defines that
maysir is anything that contains elements of profit and loss that is carried out in a way
that is not justified by the Shari'a and without any serious effort, then it includes maysir
(gambling) (Yusuf, 2007). In addition, maysir can mean all games that require a losing
and winning party and the winning party has the right to take property from the losing
party (Nugroho, 2018). So based on the various definitions above, we can conclude that
maysir is all kinds of games, regardless of type, involving several parties, in which it
contains elements of betting and win-lose and the winning party is entitled to the property
of the losing party.
Prohibition of Maysir
Islam strictly prohibits all forms of gambling. We can find this prohibition in the Al-
Quran and As-Sunnah. In the Qur'an, the prohibition of maysir goes through two stages.
The first stage is contained in QS. Al-Baqarah: 219, Allah swt says.
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1205
Mereka menanyakan kepadamu (Muhammad) tentang khamar dan judi. Katakanlah,
“Pada keduanya terdapat dosa besar dan beberapa manfaat bagi manusia. Tetapi
dosanya lebih besar daripada manfaatnya.”
In that verse, the prohibition of khamr and gambling has not been stated explicitly.
This verse is an introduction to the total prohibition of alcohol and gambling which is
conveyed in the form of satire or in an unclear manner (Katsir, 2006). The new clear and
final prohibition by Allah SWT is conveyed in verses 90-91 of Surah Al-Maidah. Allah SWT
says,
Hai orang-orang yang beriman, sesungguhnya (meminum) khamr, berjudi, (berkorban
untuk) berhala, mengundi nasib dengan anak panah adalah perbuatan keji, termasuk
perbuatan setan. Maka jauhilah perbuatan-perbuatan itu agar kalian mendapat
keberuntungan. Sesungguhnya setan itu bermaksud hendak menimbulkan permusuhan
dan kebencian di antara kalian lantaran (meminum) khamr dan berjudi itu, dan
menghalangi kalian dari mengingati Allah dan salat; maka berhentilah kalian (dari
mengerjakan pekerjaan itu).
In addition to the verses of the Qur'an, there are several nabawiyah hadiths that
emphasize the forbidden status of gambling. Among them,
Buraidah ra. meriwayatkan dari Rasulullah Saw bahwa beliau pernah bersabda, “Siapa
saja yang bermain judi dengan dadu, maka seakan-akan dia telah mencelupkan
tangannya ke dalam daging babi dan darahnya.
Diriwayatkan dari Abu Musa ra. Bahwa Nabi Saw pernah bersabda, “Siapa saja yang
bermain judi dengan dadu maka ia telah durhaka kepada Allah dan rasul-Nya.”
Based on the arguments of the Qur'an and Sunnah, the scholars of the Salaf as-
Salih until now have agreed in one voice (ijma') that maysir or gambling, regardless of
its type, includes actions that are forbidden by the Shari'a and the perpetrators are
punished as perpetrators of sin. big (fasiq) (Nugroho, 2018).
Maysir 's Prohibition
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1206
Among the reasons why Islam has forbidden gambling is because it can cause
mafsadah or damage. This damage includes the collapse of religious foundations, moral
degradation, economic destruction, and damaging social harmony such as (Nabila Zulfaa,
2018):
1. Gambling can make the perpetrators increasingly neglectful of carrying out Allah's
commands such as prayer, fasting, dhikr and other worship which are primary
needs (
al-hajaat adh-dharuriyyah
). This is because the time available is spent
doing gambling activities so that the person concerned forgets his responsibility as
a servant of Allah SWT.
2.
Indeed, gambling can give rise to the seeds of enmity and discord among human
beings. This has been explained by Allah SWT in QS Al-Maidah verse 91.
3.
The sin of gambling is greater than the benefits, as Allah says in QS. Al-Baqarah
verse 219
4. Gambling can have an impact on the moral damage of the perpetrator, because
he is accustomed to relying on the aspect of chance (speculation) and neglecting
productive activities to be able to bring in lawful and blessed sustenance.
5. Can cause addiction and dependence for the perpetrator. So that even though the
person concerned has experienced many defeats and losses, he will continue to
engage in the world of gambling.
The rampant practice of gambling can be a parasite for the economy of a nation. Because
with a lot of gambling, it will increase crime rates, increase poverty rates due to defeats
in gambling, and can cause other economic problems
Binary Options
Binary option is a type of option instrument that provides a fixed expiration date,
with a fixed payout. Basically, this instrument provides an opportunity for someone to bet
by choosing yes or no. In particular, the stakes are whether the set price of the underlying
market will be above or below the position we have previously placed at a predetermined
future time (Cofnas, 2015).
In simple terms, Binary Options are instruments that provide opportunities for
investorsto gain profits (profits) by predicting the value of an asset within a certain period
of time that has been selected through the binary system (Lestari & Arifin, 2022). Initially,
investors will open an account on one of the platforms, such as binomo, iq option,
oxtrade, or other platforms. After the account is verified, investors are asked to make an
initial deposit in either Rupiah or US Dollars, some are pegged at a high value, there are
also platforms that set a low and affordable initial deposit value. The next step, investors
will choose assets from the many assets provided by the platform which will later become
objects for speculation. For example, the investor chooses the value of the USD-GBP
movement, then he is given two choices in determining the price movement of the asset,
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1207
namely "higher" or "lower", which is then accompanied by making a deposit in the form
of a contract against one of the options of the assets provided by the platform. If the
investor predicts that the price of an asset will rise within a certain period, he will choose
the "higher, if on the contrary the investor speculates that the price of the asset will
decrease in a certain period of time, then he will choose the "lower. When the investor
chooses one of the two options, he must also deposit the nominal rupiah/dollar that has
been deposited at the beginning as a contract with the binary options platform. If the
result of the preposition that has been inputted by the investor - right - within the
specified time period, then he will get profit the promisedOn the other hand, if the result
of the preposition that the investor has placed before - is incorrect - within a certain
period of time, then the investor will lose all the funds he has inputted when determining
the preposition (out of the money)
METHOD
The method applied in this research is using a normative legal approach by using
qualitative methods derived from secondary data (Lestari & Arifin, 2022). This research
examines binary options using Desk Research. Secondary Research or Desk Research
Methods is a research method whose analysis through comprehensive literature research
from industrial secondary data and academic resources. This method was chosen when
the current information is still limited.
RESULT AND DISCUSSION
Covert Gambling in Binary Options
To analyze whether in binary options there is an element of gambling or not, we
need to know the transaction scheme on the platform. Below we attach an example image
from one of the platform's binary options IQ Option.
Figure 1.
Captions:
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1208
1. Assets that are the object of speculation
2. Total investor deposits (rupiah or US dollars)
3. Contract value or the amount of money to be bet
4. Deadline (expired time)
5. Percentage of profit (profit) from the total contract value (if the investor's
prediction is correct)
6. Option for investors, higher if the price is predicted to go up, lower if the price is
predicted to go down
As we have said in the theoretical framework, in binary options an investor will
"guess" where the movement of the value of the selected asset will go. When the
investor's prediction turns out to be right, he will get the profit promised by the platform.
However, if what happens is the opposite, namely the investor's prediction is wrong, then
the investor will lose the funds he had risked when he made the initial preposition.
(Puspitasari & Rachim, 2021).
In the first step, after the investor opens an account on one of the binary options
platforms, then he will deposit funds with a certain value, as shown in point no. 2 in
Figure 1. In the second step, investors will choose an asset as an object to trade, such
as a commodity index, stock index, or currency movement (note point 1 in figure 1.). In
the third step, the investor will determine the number of his funds that will be at stake
within a certain period of time (point 3). Then the binary options will calculate the
potential profit (profit) that will be obtained from the transaction. The profit value
promised by the binary options is quite diverse, ranging from 60% - 90% (point 5 in
figure 1.). In the fifth step, the user will choose the duration of the transaction (expired
period) that varies, ranging from a few seconds, minutes, hours, or even days (point 4 in
figure 1.). Then the last stage, the investor will predict where the asset price will move
in the duration range he has previously chosen, if he believes the asset price will move
up, then he will choose the "higher, but if he predicts the asset price will fall after an
expiration time (expired period), then he will choose the "lower" (point 6).
After the six steps above are carried out by the IQ Option user, then he just waits
for the results of the preposition. If the time duration has expired, and the last position
of the asset price turns out to be in accordance with the investor's prediction, up or down,
then the investor is entitled to get the profit as promised by the platform. The amount
can be 60%, 70%, 80%, or even 90% of the total amount of funds that he has bet.
However, if the opposite happens, i.e. the predictioninputted by the investor is wrong,
for example, he predicts an increase, but it turns out that the price of the asset falls after
the expiration time, then he (the investor) will lose all the funds he has staked for the
asset (out of the money).
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1209
Based on the transaction systematics that we have presented above, we can
conclude that binary options are a modern gambling practice because they have met 4
(four) gambling criteria (Nugroho, 2018), namely :
1. There are parties who bet
As previously explained that in binary options there are two parties involved,
namely the investor and the binary option platform.
2. The existence of assets at stake
It is clear that the assets at stake in the binary options platform are money,
both in Rupiah and US Dollars. Both parties are risking assets in each transaction.
3. There are winners and losers.
If the investor's prediction of the price of an asset at a certain time is
correct, then the investor will be the winner. Meanwhile, if the investor's prediction
turns out to be wrong, then the platform is the winner
4. The winning party takes the assets from the losing party
In the binary options platform, it has been agreed that if the investor has correctly
predicted the price movement of an asset within a certain period of time, then he is
entitled to the money that has been promised by the platform in a certain amount. profit
given is based on the percentage % of the value of the capital staked by the investor,
which has been promised by the platform beginning of the preposition. For example, if
an investor bets Rp. 100.000,-, then the platform promises 80% profit, if the investor's
prediction is correct, then he is entitled to a profit of Rp. 80,000,-.
If the opposite happens, i.e. the investor's prediction is wrong, then he will lose
all the funds he had staked at the beginning, and the money will automatically change
ownership into the property of the binary options platform.
CONCLUSION
Based on what we have explained in the results and previous discussion, we can
conclude that the binary options platform is a financial instrument that is identical to
gambling or can be said to be hidden gambling. This is because transactions on the binary
options platform contain 4 (four) gambling criteria that have been agreed upon by the
scholars; there are parties who bet, there are assets at stake, there are winners and
losers, and the winning parties are entitled to the assets of the losing party.
REFERENCE
Bappebti. (2022).
Bappebti Tutup Web Perdagangan Ilegal.Pdf,”
. Google Scholar
Cofnas, Abe. (2015).
The forex trading course: a self-study guide to becoming a
successful currency trader
. John wiley & sons. Google Scholar
Maysir Element Analysis In Binary Option Platform Case Study Of Iq Option Application
Indonesian Journal of Multidisciplinary Science, Vol 1 (10), Juli 2022
1210
Hasanuddin, Ahmad Firjatullah. (2019).
Pendapat Majelis Ulama Indonesia (MUI)
Kabupaten Malang Terhadap Trading Binary Option
. Universitas Islam Negeri
Maulana Malik Ibrahim. Google Scholar
Katsir, Ibnu. (2006). Tafsîr al-Qur’ân al-‘Azhîm.
Beirut: Dar Al-Kutub Al-Ilmiyyah
.
Kolkova, Andrea, & Lenertova, Lucie. (2016).
Binary Options As A Modern Fenomenon of
Financial Business
. Google Scholar
Lestari, Rohmini Indah, & Arifin, Zaenal. (2022). Godaan Praktik Binary Option Berkedok
Investasi Dan Trading.
Jurnal Ius Constituendum
,
7
(1), 19–31. Google Scholar
Nabila Zulfaa. (2018). Bentuk Maysir dalam Transaksi Keuangan.
Jurnal Hukum Ekonomi
Islam
,
Vol.2,
(No.1), hlm.6.
Nugroho, Lucky. (2018). Judi Terselubung.
Jakarta Selatan: Rumah Fiqih Publishing
.
Google Scholar
Puspitasari, Danastri, & Rachim, Faiq Rizqi Aulia. (2021). Binary Option Sebagai Komoditi
Perdagangan Berjangka Di Indonesia.
Jurnal Hukum Lex Generalis
,
2
(8), 627–648.
Google Scholar
Rifa’i, Muhammad Nasib Ar, & Nasib, Muhammad. (2012). Ringkasan Tafsir Ibnu Katsir
Jilid 1.
Terj. Syihabuddin. Jakarta: Gema Insani
. Google Scholar
Shihab, M. Quraish. (2002). Tafsir al-misbah.
Jakarta: Lentera Hati
,
2
. Google Scholar
Yusuf, Qardhawi. (2007). Halal Haram Dalam Islam.
Jakarta: Era Intermedia
. Google
Scholar
Copyright holder :
Baldad Muhammad Syarifati, Maya Panorama (2022)
First publication right :
Indonesian Journal of Multidisciplinary Science
