Futures trading + binary options
Many traders here publish futures recommendations as if they are Ali Baba’s cave and your guaranteed path to profit, and we see some thanking God for making a profit through futures!!
But the fact is that futures trading is a literal money burner, and your losses are multiplied because of it, and if you made a profit today, you will be crushed tomorrow
According to Islamic law: futures are forbidden for several reasons
One of them is that it is subject to financial leverage, which is certainly prohibited by Islamic law and by the consensus of the jurisprudential schools: Hanafi, Hanbali, Shafi'i, Maliki, Ja'fari as well
Because it is a loan that generates benefit, so it is usury
Because you are borrowing from the platform and buying through the platform itself, the platform benefits from you even if the interest rate is zero, the benefit is achieved through the fact that you bought from it
For example, if I lent you money to buy goods without interest, but I stipulated that you buy the goods from me, this is also forbidden and usury
The second reason is that you sell what you do not own
Futures are not like spot; to sell you must be a buyer
In futures, you can make a selling deal without being a buyer at all
And selling what you do not own is also forbidden
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Economically, the liquidation of futures traders amounts to astronomical figures. If you were following before a month, you know that 6 trillion dollars were liquidated in one day due to futures
It is noteworthy that the cost of the American war on Iraq over 3 years is less than 3 trillion dollars.
So imagine
In spot trading, you will not be liquidated; a drop in the currency does not mean your loss if you do not sell, but liquidation is inevitable in futures trading
.....
As for binary options, they are actually not trading
It is nothing but gambling and betting
You bet that the price will rise and you bet that the price will fall without real trading or buying and selling, and gambling is certainly forbidden by Islamic law and in all religions
Apart from the fact that it is also a waste of money
And I declare to God that I disassociate myself from anyone who asks for advice on closing or continuing a futures deal; there is no advice or help for futures, bear your sin yourself and leave me in peace
Fear God or declare war from God
Do not permit usury
