Moving away from futures is an important step for Muslims and individuals around the world for several reasons related to ethics and economic risks. Here are some reasons why this move is important:

1. High economic risks:

Extreme volatility: Futures contracts rely on predicting the future prices of assets, making them susceptible to sharp fluctuations that can lead to huge losses.

Use of leverage: In many cases, investors are allowed to use leverage (trading with borrowed money), which increases the amount of risk.

2. Gambling and speculation:

Quasi-gambling: Futures contracts are mostly based on speculation, i.e. predicting future price movements. This is similar to gambling that relies on luck rather than careful analysis.

Lack of real value: In many cases, the assets are not actually purchased, but rather the future price is negotiated, making them more like gambling.

3. Riba (interest):

Interest on open positions: Some futures contracts include fees or interest paid on positions that are kept open for long periods (e.g., fees for “rolling” contracts), which are considered a form of usury, prohibited in Islam.

Usury-based transactions: Futures contracts may include additional interest (such as what is called “swap”) that is considered usury, making it prohibited in Islamic law.