First: What are futures contracts in Binance?
In Binance, futures contracts are derivative instruments that allow you to trade on the price of a specific asset (such as Bitcoin or Ethereum) in the future, without owning the asset itself. Often:
They are traded using leverage.
There is no actual delivery of the asset.
The contract is often purely speculative on the price going up or down.
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🧕 General legal ruling (by the consensus of a large number of contemporary scholars):
❌ Traditional futures contracts (like those on Binance):
Most of them are legally prohibited for the following reasons:
1. The absence of legal exchange:
There is no real exchange between the seller and the buyer as required in the sale of currencies.
2. Using leverage (Margin):
It is a loan used for trading, and what is called "the loan that generates benefit" is realized in it, which is forbidden usury.
3. Predominance of speculative nature (Speculation):
It is closer to gambling or chance than to real investment, as one only enters to bet on price rises or falls.
4. The possibility of having forbidden conditions in contracts:
Such as financing fees or forced liquidation fees or loan fees.
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📌 Summary of the ruling:
> ✅ Futures contracts on Binance – in their current form – are prohibited in Islamic law by the majority of contemporary scholars and legal bodies, due to the presence of usury, uncertainty, and gambling.
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✅ Possible lawful alternatives:
The actual purchase of cryptocurrencies (Spot Trading) without leverage, provided that:
That the actual possession of the currency is achieved.
That the currency is lawful in itself and not based on forbidden projects.
Some fatwas permit spot trading under strict conditions.
