Analysis of binary Options from economic and jurisprudential point of view

Analyzing the economic nature of new financial instruments along with examining its jurisprudential aspects has an important role in introducing and using these instruments in Islamic financial markets. One of these tools is binary options, which due to its high attractiveness, is an important part of derivatives market exchanges. The purpose of this study is to analyze binary authority from an economic and jurisprudential point of view. This option is a type of exotic option that can be used, like other options contracts, to cover risk, arbitrage and speculation. The present study, while examining the economic nature of this type of authority, answers the question of whether these powers are also legally legitimate? The method used in this research is the conventional analytical-ijtihad method in the analysis of Islamic financial markets. The present study, while examining the types of binary options and presenting different strategies of their transactions, has examined the nature of options and especially binary options through different contracts. The results indicate that some models of this option can be corrected in the form of contracts such as basic peace, sale of rights and basic conditions, some models are only in the form of insurance contracts and others are examples of gambling. Accordingly, only some types of this contract can be used in Islamic financial markets.