(A special gift for the first article pinned on my channel 💲)
Futures contracts are popular financial instruments used to trade assets at agreed future prices. However, in Islam, their permissibility is questioned due to their nature and some of the practices associated with them.
Reasons for prohibition:
1. Not owning the asset: Futures contracts allow the sale or purchase of assets that are not owned at the time of contracting, which is considered a sale of what is not owned.
2. Uncertainty and ignorance: It involves great risks and unclear speculation, which raises doubts about its transparency.
3. Absence of physical delivery: Most futures contracts are settled in cash without actual delivery of the asset, which is contrary to the provisions of sale in Sharia.
4. Similarity to gambling: Speculation in these contracts may make them close to gambling.
Aspects that may be permitted:
1. If it is used for financial hedging and not speculation.
2. If it is implemented in accordance with Sharia controls, such as Salam contracts.
3. If it includes tangible assets and delivery has taken place physically.
advice:
It is best to consult specialized Shariah scholars or refer to reliable bodies such as the Shariah Standards Authority (AAOIFI).
Hashtags: