AoA, I have a question is it halal to trade cryptocurrency like bitcoin and other altcoins in perpetual trading it’s same as future trading but the contract has no expiry date. And one thing more I chatted with by bit support team they told me the fee calculated between shorts and longs are paid to users if the trend is positive longs pay shorts and vice versa and if the trend is negative shorts pays longs. And is it halal to use leverage in trading? I want to know is it halal or haram and I am very grateful if u could help me in the light of Islam.
Wasalam
May Allah bless you.
Traditional future trades are usually not considered as shariah compliant. Perpetual future contract is not compliant either.
And Allah knows best!
What about if there are no fees? some perpetual futures platforms incentivise users to provide liquidity by having zero fees - and sometimes rebates (negative fee)
Thank you for your response. The thought of having haram trade is really troubling me alot.
Salam Aleylum @Mufti_Billal , If I only trade with commodities like gold, silver, oil,… no forex, do you think it’s halal ? because the forex is not sure there is lot of different opinions, but the gold…etc is it halal money ?
Thank you
Assalaamu alaykum,
Even if there are no fees, the subject matter is problematic and non compliant.
AoA mufti faraz i have a question regarding trading bull and bear token in spot trading . Is it halal to trade them because they have leverage , but no liquidation, margin in it. Like Eth bull and bear token. Please guide me in this regard as i search about them but can not find an answer i think the term refer to them is ftx token in poloniex exchange
Salam,
i was waiting for this answer also, because the actual token was Ethereum, however we are buying a token with a ticker ETHBULL, whereby the buyer fully aware about the price changes for each price.
Example: Ethereum price was $1000, after that it went go to $2000. the price has been increased 100% from the original price, so basically those who purchase this ETHBULL token they were making profit 300% instead of original 100%.
the trader was fully aware about the price different for this and they purchase that token according price that been set and auto for it. so i would like to ask regarding this type of mechanism in shariah law perspective.
kindly refer this video for better explanation about my question. https://www.youtube.com/watch?v=i3oWh_2BF1Y
thank you very much for your time