Trading rulings

Is using leverage halal?

Answered by the ShariaQuant team

No, because leverage is borrowed money and in every mainstream venue it carries a financing cost. Even at 2x you are trading with funds you do not own, on terms set by a lender who can close you out. Spot only means the amount you can lose is the amount you actually put in.

Spot-only risk rules

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.

More on trading rulings

Is futures trading halal?Is margin trading halal?Is day trading halal?Is short selling halal?

Still not clear?

Ask it in the community and the team will answer.

Ask a question