Futures trading is a complex and tempting world, which is why many people turn to it in the hope of quick profits. At first, people feel that they are in control, but the end can be very painful. The investor who chooses to bet on the rise or fall of the market in the future, is not always aware of the huge risks he is putting himself in. Most of the time, he believes that he can control the situation, but the market holds unexpected and painful surprises.
High risk
Futures allow traders to use leverage, which means you can make a lot of money, but if the market is not in your favor, the loss can be huge. When the loss comes after you expected to make a profit, you feel like the world has turned against you. And if you don’t have a clear risk management plan, the loss can accelerate and leave you in a state of psychological collapse.
Market volatility
When the market fluctuates strongly, anxiety and fear increase. The trader may feel unable to make the right decision between exiting the trade with a small loss, or continuing in the hope that the market will turn in his favor at the last moment. This fear may make the person make hasty and ill-considered decisions, which may lead to greater losses.
severe stress
Losing in the markets has a great psychological impact. If you put all your money into one trade and find yourself losing everything, you will feel bitter and extremely difficult. Some people who lose may suffer from psychological problems such as anxiety and depression, and this may lead to physical effects such as heart attacks or chest attacks.
Futures, Crypto Exchanges, and Huge Losses: Mental and Physical Destruction
The crypto market, and especially futures traders, are in for harsh surprises. Crypto exchanges have lost more than $3 billion in just two days! How? Because the digital currency market is always subject to unexpected fluctuations and people’s dreams can be shattered in moments. In one second, you can find all your investments gone in vain.
destructive disturbances
When cryptocurrency prices suddenly collapse or when scandals appear on the stock exchanges, people's confidence in the market collapses. At that moment, the futures trader feels that all his efforts and money have gone down the drain and that it has been stolen before his eyes.
Anxiety and inner conflict
When you are in a volatile market and you feel like you have lost money, it is a difficult time psychologically. The fear of continuous loss or missing the next opportunity makes a person fall into an internal conflict that may push him to make hasty decisions and lose more.
Is futures trading haram?
There is almost a consensus among jurists that this type of trading is forbidden for several reasons.
Riba (interest) in futures contracts, usually involves the use of leverage, meaning the trader borrows money to increase his investment. Usually there is interest on this amount, and this is considered usury which is forbidden in Islam.
Gharar (Ignorance): Futures contracts involve a high level of gharar or ignorance, because the trader cannot know exactly what will happen in the future. This makes the transaction full of doubt and risk, and this contradicts the provisions of Islamic law, which prohibit transactions that involve great doubt.
Gambling In many cases, trading in futures contracts resembles gambling because you are betting on future market movements without any real guarantees. Islam forbids gambling because it leads to profit without any real effort or material work.
Why Instant Trading is the Best Choice? Peace of Mind and Security
Spot trading may be simpler, but it has huge benefits that you can't ignore.
Reducing Risk In spot trading there is no such thing as high leverage or bets on the future. Everything is done in real time, which reduces the risk of big losses.
Peace of mind
When your decisions are based on current events, it gives you a sense of psychological security. There is no worry about what will happen in the next few days or months, you are in control of the situation now.
Capital protection
If you want to preserve your money, spot trading is the best option for you. You won’t lose everything by betting on the future, which gives you a better chance of investing safely.
In a world full of investment opportunities, futures contracts may be tempting, but they are full of psychological and physical risks and are also forbidden. In the end, spot trading, in my opinion, is the safest option because it keeps you in a situation that you control. Preserve your religion, your psychological and physical health, and invest in safe methods that guarantee you financial stability away from high risks. Of course, this is just an analysis and opinion, not financial advice 😊👻
