Futures Trading on Binance: An Islamic Perspective
Futures trading on platforms like Binance is generally considered haram in Islamic Sharia. There are several fundamental reasons for this:
* Gharar (Uncertainty): Futures trading involves a high level of volatility and speculation. You do not own anything; rather, you are merely betting on its future price, which is not permissible in Islam.
* Riba (Interest): Futures contracts often involve the use of leverage, and the fees or charges incurred may fall under the category of riba.
* Qimar (Gambling): Speculating on price fluctuations and depending on chance for profit and loss makes it similar to gambling, which is haram in Islam.
* Lack of Tangible Assets: Futures trading does not involve the buying and selling of real assets; rather, it consists of contracts for future delivery, which often aim to profit from price differences.
For these reasons, many Islamic scholars declare futures trading to be impermissible and advise Muslims to avoid such transactions.
