With the rise of leveraged trading, many Muslim investors are questioning the ruling on futures contracts (Futures). Here is a brief answer.
What are futures contracts?
An agreement to buy or sell an asset (such as Bitcoin) at a future date for a predetermined price, often with margin and leverage.
The legal opinion:
Type ruling reason
Spot trading is permissible under the conditions of actually owning the asset.
Futures contracts with leverage are forbidden, deceptive, and involve selling what you do not own.
Perpetual contracts are forbidden and closer to gambling.
Practical application:
· Avoid leverage and margin.
· Stick to spot trading.
· Invest long instead of day trading.
If the contract generates a profit without you actually owning the asset, it is often within the realm of prohibitions.
#Halal_Investment #Crypto_Fatwas
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💡 Your opinion matters to us: Have you been trading futures? Will you change your strategy after this information?