Online trading: issues and syariah perspective / Mohamad Izzat Hakimi Midi … [et al.]

By Wikipedia, trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. Trading is the voluntary exchange of goods or services between different economic factors such as consumers, companies, and nations. Since the parties are under no obligation to trade, a transaction will only occur if both parties consider it beneficial to their interests (Hayes, 2022).

Trading can be done in two situations either offline or online. For offline trading, it means when traders physically tell their broker to place a trade over an exchange through call them or visiting the broker's office. Then, brokers do verify profiles and make trades on behalf of traders. This situation takes quite a long time in the current era of globalization, technological progress has grown rapidly. The facilities available now allow people to get everything at their fingertips. For example, people can shop without leaving home through various applications such as Shopee, Lazada, and such like that as well as trading which can be done online. Online trading is the method that facilitates buying and selling of financial instruments such as mutual funds, equities, bonds, derivatives, stocks, and commodities through an electronic interface. This has made it easier for traders to trade by using a laptop. Therefore, online trading is growing rapidly and is used more by traders than offline trading.