There are many types of cryptocurrency trading, such as spot trading, futures trading, binary trading, and more, then we will discuss why future trading is haram.
Spot trading is the buying and selling of assets on the spot.
Future trading involves buying and selling assets at a predetermined price and future date.
Binary trading is a bet type of trading. One bet that the underlying asset’s price will go up, and hence, one will make a profit while the other loses money.
So let me be direct:
The bottom line is that Spot is Halal, and futures and other derivatives trading are Haram.
Let’s move on to what makes Futures trading Haram:
→ Futures trading involves Riba/Interest, which is Haram.
Reference:
Many Ayah and Hadith condemn Riba.
• Surah Nisa Verse 161
• At-Tirmidhi 1206
• Sahih-al-Jamih 3375
• Sahih-al-Jamih 3537
• Surah-Al-Bakra 278 & 279
→ Futures trading carries the risk of being liquidated; thus, any trading with a high-risk level is haram. (Gharar)
→ In futures, the assets are not your property. In Islam, anything we cannot own, we cannot trade-in. This makes futures trading a Haram.
Reference
• at-Tirmidhi, 1232 •an-Nasaa’i, 4613
• Abu Dawood, 3503
• Ibn Maajah, 2187
• Ahmad, 14887
→ Option trading includes gambling, which is Haram.
One response to “Why Future Trading Is Haram?”
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