Also known as maysir. Means speculation or gambling. Maisir is prohibited in Islamic finance because it creates wealth from chance instead of productive activity. Sharia does not, however, prohibit the ordinary commercial speculation involved in a business enterprise because commercial risk-taking is an integral part of Islamic finance transactions. Because of the prohibition against maisir, certain financial products such as options, futures, and other derivatives are not generally used in Islamic finance. However, the International Swaps and Derivatives Association (ISDA®), in conjunction with the Bahrain-based International Islamic Financial Market, created in early 2010 a Sharia-compliant ISDA® Master Agreement that allows Muslim investors and financial institutions to engage in derivatives products that comply with Sharia principles.

For more information on maisir and Islamic finance generally in the US, see:

For more information on maisir and Islamic finance generally in the UK, see Practice notes: