Futures derivatives can it be halal and is there any way that you actually own the asset?

From what I know about futures that the interest in can I actually be called commission since when the time stamps come every 8hrs there a funding fee which contains interest however I asked the exchange that when the funding rate comes and takes a % does it take from your borrowed money or the money you own and they said that it takes from the money you own so in my perspective there is no riba in that.The only thing I’m concerned about is the delivery of the asset and if there is any way you can own it or make it halal.

@xyz @UsamaButtar

Any advice brothers?

I don’t have enough knowledge to give guidance on this matter. However, regarding the delivery of the assets, most futures derivatives are cash settled and so there is no actual delivery of assets. Crypto is grey area as you can have inverse futures and when you close your position you actually receive crypto assets.

in addition, you need to consider if you are trading with leverage, the money is advanced to you on the condition that you only trade on the platform, and this is considered a form of riba as well, as the loan is conditional on your transaction.

You should throughly investigate before engaging in levering and try to increase your knowledge, and may Allah reward you for your efforts.


‏جزاك الله خيرا,
Shukran brother
Have you heard of a wa’d contract and Salam?
And is it really cashsetteled since usdt is actually a asset so you are receiving assets back not cash right?
I’m still researching about it since it’s a complicated topic.


What do you think brother?

Brother, I sense you are actively trading in Futures with leverage, and you’re researching to confirm your bias, anything to legitimatize your activity. With this approach and mindset you might not fully benefit from the knowledge you are gaining. During the bull market, this forum was filled with questions regarding futures trading. It was like everybody was looking for halal certification and now majority of the questions relating to futures trading rarely get response.

Regarding Salam - you have to make the payment in full and delay the delivery of product. As I understand you cannot delay the price and delivery. And Wa’d is a promise contract, I don’t know the specifics, but I would assume it heavily depend on the structure of the promise between the parties.

@Mufti_Faraz_Adam wrote a brilliant paper - Mastering the logic of Sharia principles in Futures and Forwards - highly recommend reading it.

No doubt, you will come across many papers on Islamic finance read with open mind, I wish you all the best with your endeavours; exercise caution and may Allah reward you in all that you do.


Brother,I actually haven’t started to trade futures because I’m still not sure if it’s halal or haram however there is some Islamic papers that I have read and they go in deep explanation on how it’s halal.I still don’t understand with wa’d and salam contracts can I use them in crypto futures?

ok, understood…please share your findings and resources.

Brother what do you think?

Asalam alakum brother,
I’m still not sure wether it’s halal or not?
Do you have any advice or anything to say?