Many traders ask: "Did all scholars prohibit futures contracts? Or are there other opinions?" The truth is that the issue has a precise scientific detail between "general prohibition" and "minority opinions." Here is the summary:
⛔ Why do the majority of jurists reject it?
The major jurisprudential assemblies (like the Islamic Fiqh Assembly) see that traditional futures contracts are contrary to Sharia for 3 reasons:
1. Do not sell what you do not have: you are selling a contract for a commodity you do not own.
2. Selling debt for debt: neither the buyer pays the price, nor does the seller deliver the commodity at the time of the contract.
3. Leverage: it is jurisprudentially adapted as a loan with hidden interest.
✅ Are there scholars who permitted the "principle" of these contracts?
Yes, there are scholars and researchers (like Dr. Muhammad Ali Al-Qari, Dr. Mahmoud Sartawi, and Dr. Hashim Kamel) who presented different perspectives, and their main points were:
• 🛡️ For hedging, not for gambling: they permitted its use if the goal is "protecting trade" (like a factory buying raw materials in advance to avoid price fluctuations) and not just speculating on the screen.
• 🤝 The binding promise: they proposed to adapt it as a "promise to sell" rather than a completed contract to overcome jurisprudential obstacles.
• 🌍 The concept of قبض (delivery) has changed: they believe that "judicial قبض" (digital and legal registration) in our era substitutes for physical delivery.
💡 Summary for the smart trader:
If you are trading on a global platform (like Interactive Brokers) in its traditional form, you are facing clear Sharia issues for most scholars. However, if you are looking for a "halal alternative," seek contracts that rely on:
• Salam contract (advance payment and later receipt).
• Spot trading without leverage.
💬 Share your opinion..
Do you think the Islamic financial system needs to innovate entirely new "financial derivatives," or is sticking to old contracts (like Salam and Musharakah) sufficient and more than enough? 👇