A question that comes to every Muslim trader's mind, especially with the spread of leveraged trading in the Futures section.

Let's clarify the issue honestly and without complication 👇

📉 First: What does Short mean?

A short position is a bet on the price falling.

It means you sell a currency you do not own right now, and buy it later at a lower price to profit from the difference.

But here is the truth 👇

The Prophet ﷺ said:

“Do not sell what you do not have.”

(Reported by Al-Tirmidhi)

And in futures, even if the leverage is 1X, you do not actually own the asset, but you enter into a contract with the platform on the price difference only.

And this involves implicit borrowing and risk on something not owned, which is why most scholars today see this type of shorting as forbidden.

🔰 Important clarification:

•The leverage (1X or more) is not the only problem.

•The problem is not just in the leverage, but in the nature of the contract itself, as it is based on selling what you do not own, and does not rely on actual ownership of the asset, but is merely a contract between you and the platform on the price change.

✅ The alternative legitimate method (the same idea as shorting but permissible):

1. You actually buy the currency in the spot.

2. When you expect the price to drop, you sell the currency and convert it to USDT.

3. When the price drops, you buy the same currency again at a lower price.

📅 Example:

•I bought BTC for 70,000$

•I expected a decline, so I sold it for USDT.

•The price dropped to 65,000$

•I bought it again.

Profit: 5,000$ on each BTC

The same idea as shorting, but you sold what you actually own, without borrowing or interest.

💡 Summary:

•Shorting in futures is forbidden by all trustworthy scholars among us, as it is based on selling what you do not own and involves implicit usurious borrowing.

•Real selling in the spot is completely permissible, and it achieves the same result if the timing is mastered.

✍️ Allah said:

“And Allah has permitted trade and forbidden usury.”

In the end, the decision is yours.

Both methods use algorithms and analysis.

But the spot algorithm is more beneficial for you in the long run.

And remain calm in your scientific and psychological journey.

So choose to follow the path of the greatest and most truthful man in history ﷺ.

And do not be swayed by a temptation that changes and withers with every time.