✅ What Is Futures Trading?
Futures trading refers to a type of financial contract where two parties agree to buy or sell an asset at a predetermined price on a future date.
Common in commodities, currencies, indexes, stocks.
You don’t always own the asset; you're speculating on price movements.
Example:
You agree today to buy 100 barrels of oil at $70 each three months from now, expecting prices to rise. If oil is $80 by then, you profit. If it drops to $60, you lose.
⚖️ Islamic Perspective: Is Futures Trading Halal or Haram?
🔴 Majority Opinion: Futures Trading Is Haram
According to most Islamic scholars, futures trading is not permissible (haram). Here's why:
Reason Explanation
1. Gharar (Excessive Uncertainty) Futures involve uncertainty about price and delivery. Islam forbids contracts with major ambiguity.
2. No Ownership In many cases, you trade contracts without owning the actual asset — a form of “selling what you don’t own,” which is haram.
3. Speculation (Maisir) Futures are often speculative, like gambling, which is strictly forbidden in Islam.
4. Delayed Exchange (Non-Spot) Islamic finance prefers spot transactions (immediate exchange of goods and payment). Futures delay both.
🟢 Minority View: Some Forms May Be Halal
Some scholars and Islamic financial institutions allow limited forms of futures, if:
The asset is halal (e.g., wheat, gold—not alcohol, pork, etc.).
There is actual intention of delivery (not just speculation).
There is full ownership of the asset before selling.
The contract complies with Shariah-compliant rules (like Salam contracts).
📷 Visual Explanation
Here’s a simple diagram comparing futures trading vs. Islamic finance principles:
⚖️ Futures vs. Shariah Principles
+------------------------+--------------------+------------------------+
| Element | Futures Trading | Shariah Requirement |
+------------------------+--------------------+------------------------+
| Ownership of Asset | Usually Not Owned
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