Is trading with leverage in Binance haram? If it is not halal, is there any other platform where I can trade crypto with leverage?
Asalam Alaikam.
To the best of my limited knowledge any type of leverage trading is not sharia compliant.
1 Like
I understand that the main cause for it to be haram is the borrowing and interest paid on the leverage. So if the interest rate was zero it would be fine (like qard hasanah), and alternatively if the cost wasn’t fixed to the leverage value, but rather a proportion of the gains and losses incurred that would also be fine (like Musharakah).
A scholar can perhaps clarify?
Perpetual swaps on binance are separate to the margin markets, and I am waiting for a response to that.
Wa alaykum salaam,
With majority of leverage practices being non-compliant, a proper review should be conducted of any such facility.
Elements such as who bears liability, fees, how are gains managed will all have a Shariah implication. They all need to be Shariah compliant.