Understanding the Permissibility of Futures Trading in Islam: Insights from Scholars #

Answer from Aziz Zainuddin: Just by futures trading itself, majority of the scholars have agreed that it is impermissible.

Unless it is for hedging purposes, some scholars say it is okay, but you must have a spot position.

Due to it being a speculative asset, although few scholars do allow it for hedging purposes, the caveat being, there needs to be an underlying asset involved.

When we talk about binance futures, where you buy it more for speculative purposes and there is no underlying asset, most scholars say that it is not permissible (haram).

On the technical level, binance futures have leverage, when you execute binance futures, there is margin trading where you can trade in excess of your capital up to a degree.

Basically you are borrowing thus incurring interest which is not allowed.