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Trading rulings

Is futures trading halal?

Answered by the ShariaQuant team

No, and not for one reason. You never take ownership of the asset, both sides of the exchange are deferred when fiqh requires at least one to be immediate, the funding rate on perpetuals is riba, and the position is zero sum so someone has to lose for you to win. Any one of those would be enough on its own.

The four things that break it

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

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