Shariah advisor licensed by the central bank of bahrain

Shariah ruling on Futures

In a futures transaction, the counter-value is not present at the time of contract, it is a mere exchange of 

promises. Futures trading, where both counter-values are deferred, are held as exchange of one debt for 

another, i.e., 

bay’ al-kali bil kali

 (a sale of two deferred counter-exchanges). The deferral of both counter-

currencies results in a deferred transaction. 

According to AAOIFI standards, such a contract is not valid as it fails to fulfil the primary condition of 

dual possession of counter currencies. A future Forex is also non-Shariah compliant according to the 

scholars who argue one sided possession is sufficient, as there is no possession by any party.

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Accounting Tools (2017), Currency Futures, Available from:  

www.accountingtools.com/articles/

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