#BNBChainMeme you muslim you shoud know this..

Five Reasons Why a Financial Transaction Can Be Prohibited

1. Riba (Usury): Involving loans and interest.

2. Gharar and High Risk (Uncertainty): In unclear and ambiguous contracts.

3. Gambling (Maysir): In betting and excessive speculation.

4. Fraud (Ghash): Through price manipulation.

5. Selling What You Don’t Own: Trading assets you do not possess.

Examples ..

1. Leverage Trading

Meaning: Using high leverage (e.g., 100x or 50x) to amplify trade sizes.

Prohibition: Due to Gharar (excessive uncertainty) and high risk resembling gambling, along with the potential involvement of Riba if loans with interest are used.

2. Futures Contracts

Meaning: Agreements to buy or sell an asset (e.g., Bitcoin) at a predetermined price on a future date.

Prohibition: Involves Selling What You Don’t Own and contains Gharar.

3. Binary Options

Meaning: Betting on whether the price of an asset will go up or down within a set time.

Prohibition: It is considered Gambling rather than real investment.

4. Short Selling

Meaning: Selling an asset you do not own (borrowing it in hopes its price will drop).

Prohibition: Because it involves Selling What You Don’t Own and carries unlawful risk.

5. Price Prediction Markets

Meaning: Platforms allowing users to bet on the future price direction of a currency over a short period.

Prohibition: It is Gambling, relying on chance rather than real analysis.

6. Perpetual Contracts

Meaning: Derivative contracts without an expiry date, continuously traded with leverage for long/short positions.

Prohibition: Due to Gharar (uncertainty) and lack of immediate settlement, making it similar to gambling.

7. Crypto Lending with Interest

Meaning: Depositing cryptocurrencies into a platform in exchange for a fixed-interest return (e.g., Binance Earn).

Prohibition: It falls under Riba since it offers guaranteed returns without real investment risk.