Why is leveraged trading Haram in Islam? Possible solutions for Muslims

Nearly 1.9 billion Muslims on earth. Many want to trade. But how? Islamic principles complicate everything. In 2025, the question still persists. 🤔

The Fundamental Problems of Conventional Trading

Islam poses two major obstacles to modern trading:

1. Leverage? Haram. 🚫 It relies on interests (Riba). The platforms lend money and ask for more in return. Islam says no.

2. Futures contracts? Also Haram. 📉 We sell what we don't really own. Strange, isn't it? Sharia requires that we first own the asset.

Potential Solutions for Shariah-Compliant Trading

There are some leads. Not perfect, but interesting.

1. Profit sharing rather than interests 🔄 Platforms would take a share of the profits. Nothing on the losses. A partnership, in short.

2. Temporary Ownership 🌐 The platform could actually transfer the money just for the transaction. A kind of interest-free loan. It recovers everything at the end.

Current State of Islamic Trading

It seems that about 60% of Muslim countries now allow cryptos. With Sharia-compliant frameworks. 🕌 Spot trading generally appears Halal.

Islamic ETFs already exist. SPUS and SPTE, for example. They filter out anything that contradicts religious principles. 🌙 Wahed Invest also offers compliant options.

Trading without leverage remains allowed. But the profits? Not the same. It's a bit frustrating. That's why these alternatives matter so much. 🚀

What do you think? Any other ideas to suggest?