Futures Contracts are financial agreements in which a contract is made to buy or sell a specific asset at a specified price to be executed on a future date.
Ruling on futures contracts in Islam:
The ruling depends on the details of the contract and the type of commodity:
1. If the commodity is fully owned by the seller at the time of the contract, and is delivered in the future, taking into account all legal conditions:
The contract must be based on the lawful sale of goods that are permissible to sell according to Islamic law.
The item must be in stock at the time of contracting (or can be guaranteed to be supplied).
In this case, the contract may be permissible, provided that there is no uncertainty or usury.
2. If the contracts are merely speculative:
If the contract is made for the purpose of speculating on price changes without a real intention to deliver or receive the commodity, then this falls under the category of gambling or uncertainty, which is forbidden by Islamic law.
3. If the contracts include interest or usurious conditions:
Any contract that involves usurious interest or a condition requiring the payment of an additional amount on top of the principal is considered forbidden in Islam.
Scholars' opinion:
Traditional futures contracts, as in global financial markets, are often not permissible because they involve uncertainty and illegal speculation.
Islamic alternatives: Salam, Ijarah or Murabaha contracts can be used within the Islamic framework, provided that Sharia controls are met.
If you are considering entering this field, it is advisable to consult a specialized Sharia scholar.
Or a Sharia supervisory body to examine the details.
