Futures Trading Halal or Haram?


Crypto trading and investment have become an excellent way to earn income. Crypto platforms offer various tools for successful trading, and futures is one of them. 

Trading futures involves making contracts on derivatives through which contract parties make an agreement on purchasing or selling assets and specify the exact date when the deal must be executed and the price for the asset.

Futures trading can involve industrial, real estate, and agricultural goods, as well as cash and crypto.

Future Trading Halal or Haram

Crypto futures trading does not necessarily mean that the parties sell or get assets; it means they enter a futures contract and speculate on the asset’s price without possessing or selling it.

Is Futures Trading Halal?

The main feature of futures trading is Halal (affordable). Exceptions may be cases named by the legislator. Even though a shareholding company does not fall under Islamic law regulations, it must comply with legal and ethical requirements and control.

Although futures trading halal, there are some haram elements:

  • Interest. If a broker charges a percentage on loans it gives to you. Such interest charges are prohibited – haram. That is the most obvious violation.
  • Purchasing and selling derivatives is also an obvious haram in Islam. Being a participant of a crypto futures trading contract, you must buy or sell it to another party. Selling the contract (that is your financial obligation) is also prohibited in Islam because it is considered the action of selling a debt, which is also out of crypto futures halal.
  • Crypto futures trading involves speculation. In fact, one party bets that the asset’s price will grow, while another participant bets on the price decrease. In the end, each party have to buy (sell) the asset or pay one another the difference between the pre-agreed price and the real price of the asset. Therefore, it is considered to be a kind of gambling in Islam.

We conclude that crypto futures trading has many haram elements. However, futures is not the only trading option. Large crypto platforms offer many earning opportunities, for example, staking, margin trading, p2p exchange, etc. 

Also Read: How Can You Start Trading in a Preserve and Secure Way with Bitcoin?

Before engaging in any activity, make sure it is allowed in your region and does not violate local regulations.

Some counties are friendly to crypto assets and even accept them as a means of payment, while others impose restrictions and control. It is crucial to know the local laws and follow them, especially when it comes to financial operations. 


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