Prohibitions on trading in Islam

One, Don't sell haram goods.

Selling haram goods is clearly not permitted in Islam, and the Prophet never did that either. Therefore, stay away from trading in goods that are not clearly halal, such as liquor, cigarettes, statues and so on. The Prophet said: "The trade in khamr is forbidden" (HR. Bukhari). "Indeed, if Allah has forbidden a people to eat something, He will also have forbidden the proceeds from its sale." (HR Ahmad)

Two, don't force it.

This is a phenomenon that occurs quite often in our society, where farmers are forced to sell their crops to grain traders just because they owe them fertilizer previously. The Prophet's hadith states that sellers and buyers have the right to khiar, namely the opportunity to think while they are not separated. This is to suppress dishonesty.

Three, don't pretend to buy

A hadith narrated from Ibnu Umar R.A said, in fact Rasulullah SAW has prohibited buying and selling using the najshi method, namely pretending to pay a higher price so that other buyers will be deceived.

Four, transactions outside the market are prohibited

It was narrated from Ibnu Umar R.A. he said: "Indeed, Rasulullah S.A.W forbade holding merchandise before it arrived on the market. This is a statement from Ibn Numair. Meanwhile, according to other narrators, the Prophet S.A.W actually prohibited the purchase of merchandise before it was marketed."

Five, Do not hoard goods

It was narrated from Abdullah bin Mas'ud R.A. He said: From the Prophet SAW that the Apostle forbade holding back the purchase (hoarding) of merchandise. The issue of hoarding is a bit complicated, so various accusations are ultimately difficult to prove. The government panicked when the price of beef hit Rp 120,000 per kilogram. Feedlot operators were raided on suspicion of deliberately withholding their cattle from slaughter, even though the animals had not yet reached the necessary weight; the police were left empty-handed. Hoarding is the practice of purchasing goods in large quantities, storing them for a period, and releasing them only when prices have skyrocketed. It is an unjust act. Its consequences are manifold, including the disruption of market trading mechanisms, the display of selfishness, and the destruction of other merchants' livelihoods. It is narrated by Ma’mar bin Abdullah that the Messenger of Allah said: “No one hoards but a sinner.” (Reported by Muslim).

Six, Do not be a broker

The main difference between real traders and "brokers" is that "brokers" do not pay cash for merchandise and also do not mention the price when picking up the goods. This often happens in livestock. Belantik often brings the farmer's cows or goats to market without leaving any money behind. The new price will be decided later after the item is sold.

Narrated from Ibnu Abbas RA he said: Rasulullah S.A.W forbade middle people (become brokers?) to take the opportunity to buy merchandise to sell to village people. It was narrated from Anas bin Malik RA that he said: We are prohibited from selling merchandise to middle people (as brokers) to sell to village people, even if that person is their brother or father. In trading science they are called middlemen, but they do not behave in the sense of true traders.

Or, recently we heard about a system for selling goods using the dropshipping method. Here, someone sells a product to buyers (consumers) without buying the product first. The buyer is looked for first, and if there is already a buyer who has ordered and paid, then contact the official agent. Then the wholesaler will send the goods directly to the buyer's address in the name of our shop. The Prophet reminded us not to sell goods that do not belong to us, because this could harm other parties.

Hakim bin Hizam once asked Rasulullah sallallaahu'alaihi wa sallam: "O Rasulullah, there is someone who comes to me and asks me to sell him something that I don't have yet, by first buying it for him from the market?" The Messenger of Allah answered: "Do not sell something that you do not have" (HR Abu Daud, Ibn Majah, Tirmidhi and Nasai).

Seven, Pay in cash, don't go into debt

Delayed payments are so common in traditional trading, they call them “debts”. However, the situation sometimes goes too far. My studies with traders reveal just how many suffer losses—or even go bankrupt—because their receivables remain unpaid for months or years. This is often referred to as "defaulting" or "absconding with the money." For traders dealing in commodities like mangoes or coconuts—who often operate with limited capital—having tens or hundreds of millions in receivables go unpaid can destroy their businesses. This happens frequently.

In reality, this is not debt in the conventional sense. A standard loan involves a clear agreement to lend money for future repayment. In trade, however, what occurs is a delayed payment—often forced upon the seller by the buyer’s dominant position within the trading system and supply chain.

Islamic law regarding debt is very strict; dozens, perhaps hundreds, of Hadiths address this issue. In trade, debt would actually be unnecessary if every transaction were conducted on a cash basis—an immediate exchange of goods for money. A Hadith narrated by Usamah bin Zaid (may Allah be pleased with him) states, "Indeed, riba (usury) lies in the deferment of payment." The Prophet (peace be upon him) said, "Exchanging silver for gold constitutes riba unless the exchange takes place on the spot. Exchanging wheat for wheat is riba unless the exchange takes place on the spot. Exchanging dates for dates is also riba unless the exchange takes place on the spot."

The key point is that value changes due to the factor of time. One Hadith deserves special emphasis: "...indeed, the best among you is the one who is best in repaying debts."

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