Is Leverage / Futures Trading permissible in religion ?

sulendra12

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Quote from: UmerIdrees on January 29, 2021, 11:16:40 AM

Many of the people are doing the leverage and future trading on different platforms like Bybit or binance. Just curious to know if this is Halal and permissible in religion ?
If not, then provide any proof or evidence to convince.

It's basically you make a loan for your trading stuff with some "collateral" depends on where you make the leverage on.
In Islam it's haram, because you have to pay the interest if you want to pay the leverage back. Yeah it's good if you win, but what would happened if you loss? It would be really difficult you to recover the losses.

That's why in Islam, it's not recommended to use leverage. Yeah it could give you the biggest profit you could imagine, but I would rather not use that.

UmerIdrees

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Quote from: maju69 on August 02, 2021, 01:08:38 PM

Whether it's halal or haram, who wants to know. Because if it is said to be haram, are you ready to leave it? And if it is lawful do you have writings since ancient Greek civilization about this law?
everyone always say "Novus Ordo Seclorum" LOL

I am not doing future's trading because i know it is not allowed. I only want to know more people stance on it and also when more people show evidences with their point of view, it clears the concept and doubts in mind.

maju69

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Whether it's halal or haram, who wants to know. Because if it is said to be haram, are you ready to leave it? And if it is lawful do you have writings since ancient Greek civilization about this law?
everyone always say "Novus Ordo Seclorum" LOL

UmerIdrees

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Quote from: Sayeds56 on January 29, 2021, 02:07:27 PM

Quote from: UmerIdrees on January 29, 2021, 11:16:40 AM

Many of the people are doing the leverage and future trading on different platforms like Bybit or binance. Just curious to know if this is Halal and permissible in religion ?
If not, then provide any proof or evidence to convince.

As far as I understand Sharia law there is no problem in buying low and selling high at your chosen price, in any Market from Stocks, Commodities, forex or Crypto Currencies if you are trading in Spot Market but leverage, future or forward trading is not allowed because in these type of trading , element of uncertainty, speculation and gambling is involved. In future trading you sell what you don't even own and later buy it to cover/close your trade which is absolutely not allowed as quoted by famous Islamic Scholar Dr. Zakir Naik.

https://www.youtube.com/watch?v=xKT1WCjn0j0

https://forum.islamicfinanceguru.com/t/fatwa-are-forward-futures-haram-or-halal/156

Most of the evidences are relevant to stock and forex. There is not much material about the crypto futures trading although it is not permitted and not allowed.

Anyone have more materials can share and help.

n0ne

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Anything and everything happening with our life can be associated with religion. It is our mind, and the way we look at the issues. We can't state whether it is halal or not, because different set of people have difference of opinion on the same thing.

Sayeds56

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Quote from: UmerIdrees on January 29, 2021, 11:16:40 AM

Many of the people are doing the leverage and future trading on different platforms like Bybit or binance. Just curious to know if this is Halal and permissible in religion ?
If not, then provide any proof or evidence to convince.

As far as I understand Sharia law there is no problem in buying low and selling high at your chosen price, in any Market from Stocks, Commodities, forex or Crypto Currencies if you are trading in Spot Market but leverage, future or forward trading is not allowed because in these type of trading , element of uncertainty, speculation and gambling is involved. In future trading you sell what you don't even own and later buy it to cover/close your trade which is absolutely not allowed as quoted by famous Islamic Scholar Dr. Zakir Naik.

https://www.youtube.com/watch?v=xKT1WCjn0j0

https://forum.islamicfinanceguru.com/t/fatwa-are-forward-futures-haram-or-halal/156

UmerIdrees

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Quote from: irfan_pak10 on January 29, 2021, 01:15:47 PM

Quote from: Little Mouse on January 29, 2021, 01:01:14 PM

I remember once I have seen one lecture from Zakir Naik, he was talking about stocks. And he mentioned the the leverage or future trading is haram in Islam. He had shared some good opinion with logical explanation. You can find it on youtube.

Yes! It's haram, any sort of future trading is haram in Islam.

And what about the spot trading ?
Particularly asking about the cryptocurrencies spot trading at exchanges like Binance ?

faulkner27

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In Forex leverage OR even forward bookings (which are based on speculation) is Haram. Therefore, value so determined would also be speculative. Trading in stocks and bonds, on the face value, is permissible provided there is no element of interest involved in it. Profit in any form, but interest, is permissible. Margin trading, day trading, options, and futures are considered prohibited by sharia by the "majority of Islamic scholars" (according to Faleel Jamaldeen).

nelson4lov

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Quote from: irfan_pak10 on January 29, 2021, 01:15:47 PM

Quote from: Little Mouse on January 29, 2021, 01:01:14 PM

I remember once I have seen one lecture from Zakir Naik, he was talking about stocks. And he mentioned the the leverage or future trading is haram in Islam. He had shared some good opinion with logical explanation. You can find it on youtube.

Yes! It's haram, any sort of future trading is haram in Islam.

It's obvious not all Muslims abstain from trading futures. I've seen a lot of Muslims doing it and didn't know it was forbidden until now. Well, I'm not sure there's such laws in Christianity, at least not that I know of. As much as a lot of things could go wrong when trading on futures - for instance, one can lose all their funds and commit suicide out of frustration; A lot can also go right. I know that thousands of lives have been changed positively thanks to futures and leveraged trades they took.

At the end of the day, futures and leveraged trading has its good and bad sides - just like every other thing in life.

irfan_pak10

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Quote from: Little Mouse on January 29, 2021, 01:01:14 PM

I remember once I have seen one lecture from Zakir Naik, he was talking about stocks. And he mentioned the the leverage or future trading is haram in Islam. He had shared some good opinion with logical explanation. You can find it on youtube.

Yes! It's haram, any sort of future trading is haram in Islam.

Little Mouse

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I remember once I have seen one lecture from Zakir Naik, he was talking about stocks. And he mentioned the the leverage or future trading is haram in Islam. He had shared some good opinion with logical explanation. You can find it on youtube.

dothebeats

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Uhh, pretty sure there were no known laws, written or passed down, that prohibits trading as a means to make money. You can ask your elders on whichever religion you belong (I assume it's Islam?) to be clear about this, as trading--especially futures--involves some element of gambling in it, as you are betting that X stock goes this price when the time comes. But all in all, most of the means of making money involves some form of gamble into them, so I'm not sure whether these things are halal, too.

Tytanowy Janusz

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Quote from: BIT-BENDER on January 29, 2021, 11:34:28 AM

I dont know about halal but Many Religions laws and doctrines was written thousands of years ago and those laws may not have illustration with trading online as we do now, but religion is practice now as a fanatism hub and even if there are no illustration, religion scholars who is against the trading will find away to Bend those law in Favour of what the like and don't like.
I don't bring religion into my business, once my business don't require cheating on someone, harming someone, or endangering someone's life.

Pretty much you've exhausted the topic. 100% agree.

1- no one wrote down rules about trading thousands of years ago
2 - even if there are now some people (eg priests) who think otherwise, these are only their interpretations

but..
trading may cause behavior and arouse emotions that are described as sins (such as greed). If you trade based on your strategy, trying to put emotions far away ... there is nothing bad about it. You just add liquidity to market.

BIT-BENDER

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I dont know about halal but Many Religions laws and doctrines was written thousands of years ago and those laws may not have illustration with trading online as we do now, but religion is practice now as a fanatism hub and even if there are no illustration, religion scholars who is against the trading will find away to Bend those law in Favour of what the like and don't like.
I don't bring religion into my business, once my business don't require cheating on someone, harming someone, or endangering someone's life.

UmerIdrees

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Many of the people are doing the leverage and future trading on different platforms like Bybit or binance. Just curious to know if this is Halal and permissible in religion ?
If not, then provide any proof or evidence to convince.

Topic: Is Leverage / Futures Trading permissible in religion ? (Read 189 times)