Future trading Halal or Haram


I have a question related to future trading on Binance. If we are only taking long positions and leveraging to the amount of funds we are holding, is it permissible. For example, If we have $1000 and we open a transaction with $100 at 10x, our liquidation price becomes zero, meaning we are only trading with the amount we own so even if we make a loss, its from our own money (the liquidation price shows $0 instead of a negative balance). Is this type of transaction valid and allowed?

Wa alaykum salaam,

Since the underlying asset class and investment is not Sharia Compliant, the lack of leverage doesn’t mean anything. It is still not Sharia Compliant to trade in futures.

Allah knows best

Assalam alakum brother

I have been introduced into a trading we’re they use a website called poocoin to trade these tokens and they can do 1000x is this permissible brother

Wa alaykum salaam,

Not halal.

Can you explain why as some say it’s halal

As far as I know, this a forward sale, which is not allowed in Islam.

What is a forward sale?
A sells a product to B for 50€.
Both agree that they fulfill this sale in the future, for example in a month. So neither A gives the product nor B pays the price at the time of concluding the contract.

To make this halal, one of the parties needs to fulfill his duty.
So A needs to give the product or B needs to pay the money at the time of agreement.
(if B pays the money, it will make this a salam contract, which has more conditions)

I am seeking your expert guidance on the permissibility of engaging in Nasdaq (NQ) futures trading within Islamic finance principles. Specifically, I would like your assessment of the halal status of futures trading on NQ, considering factors such as the absence of interest, the nature of the underlying asset, the distinction between speculation and investment, and the method of settlement (delivery vs. cash settlement).

I have the opportunity to work with someone trading NQ futures daily, having a statistical success rate above 88% (18 years of experience). My detailed investigation, drawing on my engineering background and experience in data business analyses, suggests this opportunity is unique, especially considering the typically high risk associated with trading.

My questions are twofold: Firstly, is there a way to make this specific Nasdaq futures trading halal, given its potential benefits for both us personally and our Muslim community? Secondly, considering the rarity of platforms offering such a high success rate, are there specific adjustments or considerations to align this opportunity with Islamic principles?

Your guidance on these matters would be invaluable. Thank you for your time and expertise.

Baraka Allah fiekom,