Futures crypto trading is a popular financial tool for making a profit. Many services and platforms offer convenient tools for this type of trading implementation. The essence of crypto futures lies in derivative contracts made between two parties. One of them “bets” on a coin’s rate increasing at some point in the future, while another one believes the rate will drop. Both parties must fulfill their obligations when the contract expires – buy and sell the underlying asset. The one that predicts the price movements correctly gains a profit. o6o3h
Now that we explained the essence of how to trade crypto futures, let’s evaluate this type of trading according to Islam and answer the question, “Is futures trading halal or not?”.
Is Crypto Futures Halal? 5y6v1e
Generally, futures trading is halal, which means permitted in Islam. But there are exceptions caused by ethical and legal requirements. Let’s consider them:
- Futures trading involves buying and selling contracts, which is considered to be haram in Islam, which means prohibited. Participation in futures trading implies selling financial obligations to other parties. In fact, it is considered as selling debt to someone else, which is not permitted in Islam.
- Trading futures implies using a broker or a platform that charges fees for services. The fact of interest charged is considered haram.
- Speculation is the essence of futures trading. In fact, each party of the futures contract bets on the future price and then has to fulfill obligations by buying or selling the asset at a pre-agreed price. It is equal to gambling in Islamic culture.
So we did not find many elements of crypto futures halal, and we dare to say that there are too many prohibited elements that do not fit Islamic laws.
Before getting involved in crypto trading, make sure that it is not restricted in your country. And if not, pick only legitime and credible platforms and services for trading.