Futures are a popular financial instrument in global markets, allowing traders to profit from future price movements of various assets. While these instruments offer opportunities for profit, there are religious and ethical considerations that make Muslims view them with caution. This article explores the reasons why futures should be avoided from an Islamic perspective, emphasizing the importance of Muslims adhering to religious values ​​in their investment decisions.

1. The element of uncertainty

In futures contracts, a contract is made to buy or sell a specific asset in the future at a predetermined price. However, the parties do not own the asset at the time of the contract, making the contract subject to the element of gharar, which is ignorance or uncertainty. In Islam, gharar is forbidden because it leads to disputes and injustice between the parties. The Prophet Muhammad (PBUH) forbade selling what one does not own or what is not guaranteed, making futures contracts a violation of this rule.

2. Excessive speculation

Futures are often used for speculative purposes rather than actual investment. Excessive speculation relies on uncertain expectations of price movements, making it akin to gambling. Islam forbids gambling because it relies on luck rather than effort or real value. Therefore, participating in futures may expose Muslims to moral and religious risks.

3. Dealing with usurious interest

Many trading platforms, including those offering futures, charge financing fees or interest on long-term open positions. These fees are considered usury, which is forbidden in Islamic law, making dealing in these contracts impermissible for Muslims.

4. Social and ethical responsibility

Islam encourages Muslims to invest in financial instruments that benefit the individual and society. Futures contracts, due to their complex nature and the high risks associated with them, may result in significant losses that are not only borne by the investor but may also have negative effects on his family and society. Therefore, it is advisable to avoid these instruments and focus on investments that are characterized by transparency and fairness.

5. Legal alternatives

Instead of futures, there are legitimate alternatives that Muslims can explore, such as Sharia-compliant mutual funds, pure stocks, and contracts based on the buying and selling of real assets. These alternatives are in line with Islamic values ​​and provide sustainable investment opportunities.

Conclusion

While trading platforms like Binance offer a variety of options for investors, it is important for Muslims to adhere to Sharia principles in their investment decisions. Futures contracts contain elements that make them incompatible with these principles, so it is best to avoid them and look for alternatives that are in line with religious values. Muslims should also be aware of the characteristics of different financial products to ensure that they make informed decisions based on religious and ethical principles.