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I recently started exploring crypto and noticed that exchange like Binance.com offers future trading on their platform. So I want to know if this is halal or haram?

Binance clearly mentioned in their docs that they charge a funding fee on each future trade which consists of a fixed interest rate of 0.03% plus premium. So is this interest rate the interest which is forbidden in Islam? or is it the trading fee of Binance?

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  • This is the first time I'm hearing of this. It does sound like haram interest, but I haven't looked into it more than what you've provided. Personally I'd avoid it unless fairly certain it was halal. Even with regular crypto transactions, there's a diff of opinion amongst scholars, although I follow the understanding that it is halal as you're not gambling (no serious risk of getting zero in return as with the lottery for example),and it's not interest (as the return is not fixed). That's jy understanding. Allah knows best. – moinudin Feb 21 at 20:55
  • @moinudin thanks for the reply. Can you do some research on this, please? I will wait for other answers also. – Iftikhar uddin Feb 22 at 8:03
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I regularly use to do future trade in the past made huge and lost aswell i was misguided by the concept that the interest is the fee like any other service provider . but later on i came across a bayan of dr zakir naik stating futures totally haram as it is alike betting and and haram interest infested and further mentioned that ( spot trading is totally halal unless the project u r investing in is not induldge in haram business and further mentioned that he himself is involved in spot trading ) after that i decided not to do futures anymore instead i started doing defi .

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