Auctions are permissible in Islam.
In an auction, items for sale are offered to a group of buyers who bid prices that each is willing to offer in exchange for the item.
This practice is referred to as “bai’ al-muzayadah”.
A hadith, reported by Imam Tirmizi, records that “the Prophet (ï·º) once offered two items for auction to his companions.
One of the companions was willing to buy the items for one dirham.
The Prophet (ï·º) then asked if anyone could offer a higher price.
When another companion offered two dirhams for the items, the Prophet (ï·º) sold the items to him”.
