Automated Trading (Bots) as a Sharia-Compliant Strategy
The use of trading bots can be employed in Islamic finance under specific conditions:
Prohibition of usury: Spot trading without using leverage, loans, or financial derivatives that include interest.
Reducing uncertainty: Clear algorithms based on technical/fundamental analysis, and limiting irresponsible speculation.
Halal assets: such as $OM (Mantra Chain platform) specialized in documenting tangible assets ethically, **$PAXG ** backed by actual gold (Sharia-approved), and **$LUMIA ** for a decentralized infrastructure that serves crowdfunding projects transparently and avoids forbidden activities. These assets avoid forbidden sectors (such as gambling) and do not rely on usurious profits.
Instant settlement: Trades are completed daily within the bot framework to avoid time ambiguity (“facilitator”).
How to create halal trading bots on the Binance platform?
You can design an automated trading bot via the Spot -> Bots section in Binance, where bots are programmed to execute automatic buy/sell orders based on a pre-defined price fluctuation percentage (e.g. buy at 3% up, sell at 5% profit). This is done without using leverage or interest, while adhering to Sharia requirements (avoiding gambling and uncertainty). It is recommended to activate the "Spot" mode only and avoid pairs with recurring fees (riba).#Sharia_compliant#IslamicFinancials