3. Futures Contracts
Description: Speculating on price movement without actual ownership of the asset.
Sharia Perspective:
The Prophet Muhammad (peace be upon him) said:
"Do not sell what you do not possess" (Narrated by Tirmidhi and authenticated by Al-Albani).
The companion Zaid ibn Thabit said: "The Messenger of Allah prohibited the sale of what a person does not own."
The Tabi'i Al-Zuhri said: "Gharar sales are prohibited because they involve uncertain risks."
Contemporary Scholars:
The Council of Senior Scholars: "Contracts in which the contracting party does not own the asset are considered gharar and gambling."
Sheikh Saleh Al-Fawzan said: "Futures contracts as they are conducted today in financial markets are forbidden because they are sales of gharar."
Ruling: Forbidden Example: You open a contract expecting the price of Bitcoin to rise, without owning the actual currency, which is closer to gambling.
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