How do perpetual futures contracts align with Islamic principles in the context of cryptocurrency?
Harun XiaoLoung WanitpatumrataNov 03, 2020 · 5 years ago3 answers
In the context of cryptocurrency, how do perpetual futures contracts comply with the principles of Islamic finance?
3 answers
- Lopez GramSep 29, 2024 · 10 months agoPerpetual futures contracts in the cryptocurrency market can be analyzed from an Islamic perspective. According to Islamic principles, engaging in transactions that involve interest (riba) is prohibited. However, perpetual futures contracts do not involve the payment or receipt of interest. Instead, they are settled through a funding mechanism based on the difference between the contract price and the underlying asset price. This mechanism allows traders to hold positions indefinitely without the need for expiration dates. As long as the funding rate is not derived from interest, perpetual futures contracts can align with Islamic principles.
- Shaw KennedyApr 20, 2022 · 3 years agoWhen it comes to perpetual futures contracts and Islamic principles, it's important to consider the concept of speculation. Islamic finance discourages excessive speculation and encourages transactions that are based on real economic activities. Perpetual futures contracts, although speculative in nature, can still be considered compliant if they are used for hedging purposes or to manage risk. As long as the contracts are not used solely for speculative purposes and are backed by real assets, they can align with Islamic principles.
- Jansenio Gonzales VenegasApr 14, 2022 · 3 years agoFrom a third-party perspective, perpetual futures contracts in the context of cryptocurrency can be seen as a tool for traders to gain exposure to the price movements of digital assets without actually owning them. These contracts allow traders to go long or short on the underlying asset, providing opportunities for profit in both rising and falling markets. While it's important for individuals to consider their own religious beliefs and consult with scholars, perpetual futures contracts can be seen as a way to participate in the cryptocurrency market while adhering to Islamic principles.
Top Picks
How to Use Bappam TV to Watch Telugu, Tamil, and Hindi Movies?
2 168435How to Trade Options in Bitcoin ETFs as a Beginner?
1 3316Crushon AI: The Only NSFW AI Image Generator That Feels Truly Real
0 1271How to Withdraw Money from Binance to a Bank Account in the UAE?
1 0238Who Owns Microsoft in 2025?
2 1229Bitcoin Dominance Chart: Your Guide to Crypto Market Trends in 2025
0 0215
Related Tags
Hot Questions
- 2716
How can college students earn passive income through cryptocurrency?
- 2644
What are the top strategies for maximizing profits with Metawin NFT in the crypto market?
- 2474
How does ajs one stop compare to other cryptocurrency management tools in terms of features and functionality?
- 1772
How can I mine satosh and maximize my profits?
- 1442
What is the mission of the best cryptocurrency exchange?
- 1348
What factors will influence the future success of Dogecoin in the digital currency space?
- 1284
What are the best cryptocurrencies to invest $500k in?
- 1184
What are the top cryptocurrencies that are influenced by immunity bio stock?
More