Assalamu Alaikum,
I seek guidance regarding the permissibility of engaging in swing trading with cryptocurrencies on platforms like Bitget, specifically using the leveraged USDT-M futures with an isolated margin mode. My understanding is as follows:
1. Nature of Cryptocurrency: Some scholars view cryptocurrencies as permissible if they are used as a medium of exchange and store of value without engaging in speculative activities.
2. Leverage and Margin Trading: Trading with leverage involves borrowing funds to increase the size of one’s position. On platforms like Bitget, using leverage (even in isolated margin mode) incurs interest on the borrowed amount, which raises concerns of riba (interest), prohibited in Islam.
3. Futures and Speculation: Futures contracts can enable speculation on price movements without ownership of the underlying asset, which may be akin to gambling (maisir), also forbidden in Islam.
4. Risk Management with Stop-Loss: While a stop-loss function helps manage risk, it does not alter the underlying concerns regarding riba and maisir.
Based on these points, I am concerned that trading with leverage and futures in cryptocurrency could be haram due to the elements of interest and speculation involved. I would like a definitive ruling on whether engaging in leveraged cryptocurrency trading with futures on Bitget, where interest is charged, is permissible in Islam.
Jazakum Allahu Khairan for your guidance.