Future Trading Is Haram In Islam. Here is reason why? Also we will share a point why spot is halal! SO, let's start:
Future Trading Is Haram
The main thing that make future trading Haram is custody of assest. Leverage is allowed under some circumstances as it is like loan. In Islam you can't sell anything before taking asset in your custody or your representater take it in his custody. Prophet Muhammad صلى الله عليه وسلم said,
"Do not sell what is not with you" (Hadith, Sunan Abu Dawood).
As you know in future trading there is just a contract between two gamblers and no transfer of assest so that will make it Haram for both.
Spot Trading Is Halal:
Spot Trading is halal. Reason is very simple that you receive your assest in your custody. Spot Trading is also halal only if you trade halal coins. Here is how you can point out any coin as Haram:
Project must not include in gambling/Interest/Beer services.
Project must not specific for perpetual/future trading.
In short words project must not include in any Haram activity.
Project must have a valid use case.
Avoid meme coins.
Note: Do your own research before taking any decision. It is my personal opinion not a educational or financial advice. Don't forget to share with your friends. Follow @MU_Traders for more updates.
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