Islamic trading on Binance raises questions about its compliance with Sharia law, which avoids usury (interest) and transactions that involve gharar (excessive risk) or illegal speculation. Here are some important points:
1. Islamic Trading Accounts in Binance
Binance does not offer official Islamic accounts like some other platforms do.
Islamic accounts are usually free of interest (swap) that is imposed on contracts open for more than one day.
2. Trading digital currencies according to Sharia
Legitimacy depends on the type of asset: Some scholars believe that digital currencies such as Bitcoin may be permissible if they are used as a means of exchange and not pure speculation.
Leveraged trading (margin) is not Sharia compliant because it involves interest-bearing loans.
Futures and options are often considered incompatible because they involve high speculation.
3. Alternatives to Islamic Trading
Spot Trading is possible without using margin or interest.
Ensure that the project or digital currency does not deal in prohibited activities such as gambling or usury.