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Crypto Future Trading
Question:
Is futures trading (in crypto or commodities) halal or haram in Islam, considering the following points?
1. In futures trading, a person does not own the actual asset, but enters into a contract to speculate on the future price of that asset (whether it will go up or down).
2. The trader uses market analysis to take positions. If the market goes in their favor, they earn; if it doesn’t, they lose.
3. Leverage is used — for example, with $100 and 10x leverage, the trader can open a $1,000 trade. Profit or loss is also 10 times the amount.
4. This leverage is not based on interest (riba) — if the trader loses, they only lose what they have; the exchange does not demand extra money or interest on the borrowed amount.
5. Trading fees are charged by the exchange for opening and closing positions — similar to parking fees (a service fee for using the platform), not based on time or interest.
6. The trade is time-bound, which some relate to Surah Al-Baqarah, Ayah 282, where Allah commands to record debt contracts when they are fixed for a specific time.
Given all these conditions — no interest involved, service fee instead of riba, use of leverage, time-bound contracts, and speculative nature — is this form of futures trading halal or haram in Islam?
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Crypto Future Trading
updated 13 hours, 10 minutes ago
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