❌ Why are futures, leverage, and copy trading forbidden?
✅ Why is spot trading (Spot) permissible?
1. Futures:
It is a contract on a future price of a currency without actually owning it.
This means you are trading something you do not own, which is selling what you do not possess, and the Prophet ﷺ prohibited it: > "Do not sell what you do not have."
There is also speculation on price increases or decreases, akin to gambling.
2. Leverage:
When you use leverage, you are borrowing money from the platform in exchange for fees or interest.
This involves a loan that yields benefits, which is usury (Riba) prohibited by consensus.
Moreover, it significantly increases the risk, like gambling, causing you to sometimes lose your entire capital.
3. Copy Trading:
When you copy another trader, you often enter trades that involve leverage or futures without your knowledge.
There is uncertainty and ignorance because you do not know their decision-making process and do not have full control.
Islamic law prohibits entering into unknown transactions or gambling.
✅ Why is spot trading (Spot) permissible?
In spot trading, you buy the digital currency and actually own it.
Buying and selling occurs directly: money for goods.
This is similar to trading gold or silver, with the condition that:
1. The exchange occurs at the same moment (meaning you own the currency upon payment).
2. There are no interest or loans involved.
Thus, it is a legitimate trade and investment if it involves permissible currencies (not gambling tokens or prohibited projects).
