muslimtraders
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#muslimtraders its your own duty to research before getting into the market.. my analysis as under
Summary on Interest in Crypto Funding Rates:
Crypto funding rates are interest rates charged on perpetual or futures contracts traded on cryptocurrency derivatives exchanges. These rates balance contract prices with the underlying asset's market price. Traders exchange funding fees every few hours based on contract vs. spot price differences, market liquidity, and prevailing interest rates. Positive rates mean long positions pay short ones, promoting market stability but resembling interest. In Islamic finance, such interest
mechanisms are haram (forbidden).
Islamic Perspective:
In Islamic finance, riba (interest) is strictly forbidden. Crypto funding rates resemble interest due to guaranteed payments based on price differences and prevailing rates. This conflicts with Islamic principles requiring transactions to avoid riba and gharar (speculation). Islamic finance offers riba-free alternatives like sukuk (bonds), murabaha (cost-plus), and mudarabah (profit-sharing).
Conclusion:
Crypto funding rates play a crucial role in balancing contract prices but involve interest-like payments. For Muslims, trading in compliance with Shariah involves avoiding such mechanisms and opting for riba-free financial instruments. Consulting with Islamic finance experts ensures adherence to Shariah principles in trading practices.
BNB is the only coin on the binance without interest yet I am going to make my research on it. However, the Spot trading is safe.
#muslimtraders its your own duty to research before getting into the market.. my analysis as under
Summary on Interest in Crypto Funding Rates:
Crypto funding rates are interest rates charged on perpetual or futures contracts traded on cryptocurrency derivatives exchanges. These rates balance contract prices with the underlying asset's market price. Traders exchange funding fees every few hours based on contract vs. spot price differences, market liquidity, and prevailing interest rates. Positive rates mean long positions pay short ones, promoting market stability but resembling interest. In Islamic finance, such interest
mechanisms are haram (forbidden).
Islamic Perspective:
In Islamic finance, riba (interest) is strictly forbidden. Crypto funding rates resemble interest due to guaranteed payments based on price differences and prevailing rates. This conflicts with Islamic principles requiring transactions to avoid riba and gharar (speculation). Islamic finance offers riba-free alternatives like sukuk (bonds), murabaha (cost-plus), and mudarabah (profit-sharing).
Conclusion:
Crypto funding rates play a crucial role in balancing contract prices but involve interest-like payments. For Muslims, trading in compliance with Shariah involves avoiding such mechanisms and opting for riba-free financial instruments. Consulting with Islamic finance experts ensures adherence to Shariah principles in trading practices.
BNB is the only coin on the binance without interest yet I am going to make my research on it. However, the Spot trading is safe.
as said about the XRP i hope you guys are enjoying it.. look for 1.02 its the next important zone above and 0.97 is below.
ALHAMDULILLAH its going in profit so far..
keep this in mind that its not the bull run climb f XRP observing it since 1 year I conclude it as its worth settlement for XRP which was undermined by some issues but now the trust is there.
Do read some projects that XRP signed in
recently best of luck ya'll
#Newtradersguide #muslimtraders
ALHAMDULILLAH its going in profit so far..
keep this in mind that its not the bull run climb f XRP observing it since 1 year I conclude it as its worth settlement for XRP which was undermined by some issues but now the trust is there.
Do read some projects that XRP signed in
recently best of luck ya'll
#Newtradersguide #muslimtraders