Ask Ghamidi

A Community Driven Discussion Portal
To Ask, Answer, Share And Learn

Forums Forums Islamic Sharia Crypto Futures Trading

  • Crypto Futures Trading

    Posted by Muhammad Wasif on May 16, 2021 at 12:36 pm

    We know about the opinion of Ghamidi sb on Crypto trading in general but I wanna ask about the Future Trading method in Crypto. Is it a sort of gambling?

    Let me explain it briefly. In future trading there is multiples of Profit i.e profit or loss is 20x or 30x etc. You do trading with your amount and of your profit was supposed to be 1$ then it would be 20$ and if loss was supposed to be 1$ then it would be 20$. So in this case they say that we make your Amount of trading 20 times so the profit or loss becomes 20 times and we are kind of borrow the amount from them and the profit and loss will be our only. So is it gambling?

    Faisal Haroon replied 1 year, 10 months ago 4 Members · 8 Replies
  • 8 Replies
  • Crypto Futures Trading

    Faisal Haroon updated 1 year, 10 months ago 4 Members · 8 Replies
  • Faisal Haroon

    Moderator May 16, 2021 at 6:40 pm

    Technically a futures contract is a legal agreement to buy or sell a particular underlying asset at a predetermined price at a specified time in the future. The underlying asset can be anything, including a cryptocurrency. There’s nothing inherently wrong with buying or selling futures contracts – it is not gambling. However, one should be mindful about whether or not the underlying asset is halal or not, as well as whether there’s anything morally questionable in the contract agreement.

    Please also note that trading the financial markets is very difficult and a lot of people lose money in trading derivates such as futures. Please do your due diligence before risking your hard earned money.

    • Adnan Ahmed

      Member October 26, 2021 at 3:08 am

      Salam Faisal,

      Your point is clear on future stock trading that this transaction is legal in term of price and time period but in actually bulk of futures trading carrry on already bought contract (means selling snd buying multiple times before delivery of stock ) which ultimately infliate the original price of contract or degrade to lower then original depending upon market forces. How do you see nature of transacrion in this case like I am buying crude oil contract for not recieving the actual barrels but eventualy selling on good price when market price gets high.. how would you see my oractice of trading here ?

    • Faisal Haroon

      Moderator October 26, 2021 at 2:35 pm

      I don’t think that the price of a futures contract fluctuates just as a result of a contract being bought and sold in the open market. Price fluctuations generally occur as a result of supply and demand as well as other market forces. With that said, I’m not a financial markets expert. If an expert can pinpoint a moral issue in futures trading then of course it can be revisited.

  • Muhammad Wasif

    Member May 17, 2021 at 3:27 am

    Yes but in this crypto Future trading our profit and loss becomes 20x or further and if loss becomes 20x then it can even result in liquidation of our amount i.e we are left with 0$ in hand. So I wanted clarification about this one.

    So You do trading with your amount and if your profit was supposed to be 1$ then it would be 20$ and if loss was supposed to be 1$ then it would be 20$. So in this case they say that we make your Amount of trading 20 times so the profit or loss becomes 20 times so in this scenario we are kind of borrowing the amount from them and the profit and loss will be our only.

  • Muhammad Wasif

    Member April 22, 2022 at 7:35 pm

    In future contracts if underlying asset is gold then it would be okay

    ? Increased profit or loss doesn’t make it impermissible? Am I right in my understanding.

    • Faisal Haroon

      Moderator April 22, 2022 at 10:27 pm

      This discussion is specifically about Crypto Futures, however the principle for all underlying assets remains the same as it has been explained above.

You must be logged in to reply.
Login | Register