Imam Sadiq University "Islamic Finance Research" (IFR) 2251-8290 11 1 2021 10 23 Analysis of Binary Options from Economic and Jurisprudential Points of View Analysis of Binary Options from Economic and Jurisprudential Points of View 227 258 75925 10.30497/ifr.2021.241402.1651 FA Abdolmohammad Kashian Assistant Professor, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan, Iran 0000-0002-5352-1446 Elham Parsa Ph.D. Candidate of Financial Engineering, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan Iran Journal Article 2021 07 27 Analyzing the economic nature of new financial instruments along with examining its jurisprudential aspects has an important role in introducing and using them in Islamic financial markets. One of these tools is binary options, which due to its high attractiveness, is an important part of derivative market exchanges. The purpose of this study is to analyze binary options from an economic and jurisprudential point of view. These are a type of exotic ones 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-<em>ijtihad</em> 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, and 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. Analyzing the economic nature of new financial instruments along with examining its jurisprudential aspects has an important role in introducing and using them in Islamic financial markets. One of these tools is binary options, which due to its high attractiveness, is an important part of derivative market exchanges. The purpose of this study is to analyze binary options from an economic and jurisprudential point of view. These are a type of exotic ones 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-<em>ijtihad</em> 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, and 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. https://ifr.isu.ac.ir/article_75925_4d046659e1ad67b44d425b5a1266bd1f.pdf