📌 What is futures trading?
Futures trading or futures contracts is a type of trading on Binance that allows you to buy or sell a contract representing an asset (like Bitcoin, Ethereum...) at a specified price, but the settlement occurs in the future.
You can profit whether the price goes up or down (depending on your position 'buy' or 'sell').
It often involves leverage, meaning you can open positions larger than your balance, which increases profits but at the same time increases losses.
Example:
If you have $100 and trade with 10x leverage → it's as if you are trading with $1000, so if the market gains 10%, you earn $100.
But if it drops by 10%, you could lose your entire balance.
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⚖️ Religious ruling (Forbidden or Allowed?)
There is a disagreement among scholars:
1. Those who see it as forbidden 🚫:
Because it involves 'a loan with interest' (leverage is considered a loan from the platform).
It involves very high risk similar to gambling.
What is done in 'actual delivery' of the currency is merely speculative contracts.
2. Those who see it as permissible only under certain conditions:
The contract must be on real assets.
That delivery and receipt actually occur.
Without interest or loan fees.
3. The prevailing opinion among many contemporary scholars:
Most forms of futures trading on platforms like Binance are not legally permissible due to leverage and interests, and they resemble gambling.
✅ The halal alternative:
Spot trading: You buy a cryptocurrency and own it directly.
Long-term investment: Buying legitimate currencies and holding them for a long period, and when their price reaches a good profit, you sell the currency.
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Finally, and this is my personal opinion, future trading or futures contracts are religiously forbidden due to significant doubts, and they are a major gateway to losses. Glory be to God, every door 🚪 to something forbidden always leads to severe losses. 🤷🏻♂️📈✍🏻
