Futures Trading
The prevailing ruling: prohibition.
This type of trading doesn't mean you own the coin itself; it's more like a "bet" on its future price, and it often involves what's called "leverage".
Why is it considered haram by most scholars and juristic bodies?
There are several legal reasons that come together in futures contracts:
Usury (financing fees): When using leverage, you borrow money from the platform to trade with an amount larger than your capital, and the platform charges fees (Funding Fees) for this loan, which is essentially usury.
Lack of immediate exchange: In Sharia, selling currencies requires "immediate exchange" (i.e., receiving the item and delivering the payment). In futures contracts, you never actually own the coin; you only hold a paper contract.
Risk and gambling: Futures contracts carry a very high risk (liquidation system), where you can lose your entire capital in seconds if the price moves against your expectation, akin to gambling.
Selling what you don't own: Prophetic behaviors say: "Don't sell what you don't have." In futures contracts, you are buying and selling contracts without owning their underlying assets.#SoldierChargedWithInsiderTradingonPolymarket #AaveAnnouncesDeFiUnitedReliefFund #OpenAILaunchesGPT-5.5 #BalancerAttackerResurfacesAfter5Months #BalancerAttackerResurfacesAfter5Months $USDC $BNB $BTC
The prevailing ruling: prohibition.
This type of trading doesn't mean you own the coin itself; it's more like a "bet" on its future price, and it often involves what's called "leverage".
Why is it considered haram by most scholars and juristic bodies?
There are several legal reasons that come together in futures contracts:
Usury (financing fees): When using leverage, you borrow money from the platform to trade with an amount larger than your capital, and the platform charges fees (Funding Fees) for this loan, which is essentially usury.
Lack of immediate exchange: In Sharia, selling currencies requires "immediate exchange" (i.e., receiving the item and delivering the payment). In futures contracts, you never actually own the coin; you only hold a paper contract.
Risk and gambling: Futures contracts carry a very high risk (liquidation system), where you can lose your entire capital in seconds if the price moves against your expectation, akin to gambling.
Selling what you don't own: Prophetic behaviors say: "Don't sell what you don't have." In futures contracts, you are buying and selling contracts without owning their underlying assets.#SoldierChargedWithInsiderTradingonPolymarket #AaveAnnouncesDeFiUnitedReliefFund #OpenAILaunchesGPT-5.5 #BalancerAttackerResurfacesAfter5Months #BalancerAttackerResurfacesAfter5Months $USDC $BNB $BTC