Article Sidebar

Analysis of futures trading on the Binance platform from the perspective of Fiqh Muamalah
Submitted
February 9, 2024
Accepted
September 13, 2024
Published
December 29, 2024
Download
PDF Review Reports Originality Report
Statistic
Read Counter : 151 Download : 207

Main Article Content

Abstract

Introduction
One of the business transactions that developed in the digital era is futures trading. This type of transaction involves high risk where profit is obtained from the difference between buying and selling, with goods being delivered at a later date. Profits are obtained from price fluctuations on traded commodities. This type of futures trading is also done on the Binance platform. Many traders are interested in this type of trade but do not have sufficient knowledge and understanding, especially regarding Fiqh legality.
Objectives
The study aims to explain the practice of futures trading on the Binance platform from the perspective of Fiqh Muamalah.
Method
This study is literature research with a juridical-normative approach that relates facts to futures trading cases.
Results
The results of this study explain that futures trading on the Binance platform includes bay' al-şarf, a type of money trade in which money is obtained and delivered at a later date.
Implications
Futures trading on the Binance platform in Fiqh Muamalah is prohibited because it involves elements of uncertainty (gharar) and speculation (maysir). The exchange rate is uncertain, which can cause one party to benefit and the other party to be harmed.
Originality/Novelty
This research contributes to the theory of Fiqh legality in future trading practices.

Article Details

License

Copyright (c) 2024 Rifki Zulkarnain , M. Roem Syibly

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Zulkarnain , R. ., & Syibly, M. R. (2024). Analysis of futures trading on the Binance platform from the perspective of Fiqh Muamalah. Journal of Islamic Economics Lariba, 10(2), 795–812. https://doi.org/10.20885/jielariba.vol10.iss2.art9
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Abubakar, M., Hassan, M. K., & Haruna, M. A. (2019). Cryptocurrency tide and Islamic finance development: Any issue? In J. J. Choi & B. Ozkan (Eds.), International Finance Review (pp. 189–200). Emerald Publishing Limited. https://doi.org/10.1108/S1569-376720190000020019

  2. Alam, N., Gupta, L., & Zameni, A. (2019). Cryptocurrency and Islamic finance. In N. Alam, L. Gupta, & A. Zameni (Eds.), Fintech and Islamic finance: Digitalization, development and disruption (pp. 99–118). Springer International Publishing. https://doi.org/10.1007/978-3-030-24666-2_6

  3. Almahendra, R., Okta Viyani, A., & Nabawi, M. (2024). Is crypto legitimate? Study on the relationship between legitimacy and public engagement on crypto market in Indonesia. Intangible Capital, 20(2), 393–411. https://doi.org/10.3926/ic.2425

  4. Anjum, M. I. (2022). An Islamic critique of rival economic systems’ theories of interest. International Journal of Ethics and Systems, 38(4), 598–620. https://doi.org/10.1108/IJOES-08-2021-0155

  5. Anugrah, M., & Maulana Siregar, A. R. (2024). The position of informed consent between midwives and patients in childbirth according to Law Number 17 of 2023 concerning Health. International Journal of Research and Review, 11(5), 286–294. https://doi.org/10.52403/ijrr.20240533

  6. Arif, M. I. A. M., Kamaruddin, N. C., & Markom, R. (2024). Cryptocurrency: A currency or investment asset? KnE Social Sciences, 4th International Conference on Law Reform (4th INCLAR), 997–1012. https://doi.org/10.18502/kss.v8i21.14815

  7. Azizah, A. S. N., & Irfan, I. (2020). Fenomena cryptocurrency dalam perspektif hukum Islam [The phenomenon of cryptocurrency in the perspective of Islamic law]. Shautuna: Jurnal Ilmiah Mahasiswa Perbandingan Mazhab, 1(1), 62–80. https://doi.org/10.24252/shautuna.v1i1.12424

  8. Cai, T., Dong, M., Chen, K., & Gong, T. (2022). Methods of participating power spot market bidding and settlement for renewable energy systems. Energy Reports, 8, 7764–7772. https://doi.org/10.1016/j.egyr.2022.05.291

  9. Chen, R., Wei, B., Jin, C., & Liu, J. (2021). Returns and volatilities of energy futures markets: Roles of speculative and hedging sentiments. International Review of Financial Analysis, 76, 101748. https://doi.org/10.1016/j.irfa.2021.101748

  10. Cheng, I.-H., Kirilenko, A., & Xiong, W. (2015). Convective risk flows in commodity futures markets. Review of Finance, 19(5), 1733–1781. https://doi.org/10.1093/rof/rfu043

  11. Choudhury, M. A., Rahman, A. A. B., & Hasan, A. (2018). Trade versus riba in the Qurʾān with a critique of the role of bank-saving. International Journal of Law and Management, 60(2), 701–716. https://doi.org/10.1108/IJLMA-03-2017-0021

  12. Chowdhury, M. A. M., & Razak, D. B. A. (2019). Dynamism and mechanism of digital currency (cryptocurrency) towards Islamic finance. European Journal of Islamic Finance, 14, Article 2. https://doi.org/10.13135/2421-2172/3736

  13. Christiani, K., Wibisono, A., & Tw, G. H. (2022). Perlindungan hukum terhadap nasabah cryptocurrency di Indonesia [Legal protection of cryptocurrency customers in Indonesia]. SALAM: Jurnal Sosial Dan Budaya Syar-i, 9(5), 1541–1556. https://doi.org/10.15408/sjsbs.v9i5.27644

  14. Christiani, T. A. (2016). Normative and empirical research methods: Their usefulness and relevance in the study of law as an object. Procedia - Social and Behavioral Sciences, 219, 201–207. https://doi.org/10.1016/j.sbspro.2016.05.006

  15. Daly, S., & Frikha, M. (2016). Islamic finance: Basic principles and contributions in financing economic. Journal of the Knowledge Economy, 7(2), 496–512. https://doi.org/10.1007/s13132-014-0222-7

  16. Engel, A. (2015). Buying time: Futures trading and telegraphy in nineteenth-century global commodity markets. Journal of Global History, 10(2), 284–306. https://doi.org/10.1017/S1740022815000078

  17. Eyerci, C. (2021). Basics of Islamic economics and the prohibition of riba. In C. Eyerci (Ed.), The causes and consequences of interest theory: Analyzing interest through conventional and Islamic economics (pp. 87–130). Springer International Publishing. https://doi.org/10.1007/978-3-030-78702-8_6

  18. Fajar, R., & Sugiyono, H. (2024). The legal risks for investors due to market manipulation in the cryptocurrency market. Law Development Journal, 5(4), 430–442. https://doi.org/10.30659/ldj.5.4.430-442

  19. Floros, C., & Salvador, E. (2016). Volatility, trading volume and open interest in futures markets. International Journal of Managerial Finance, 12(5), 629–653. https://doi.org/10.1108/IJMF-04-2015-0071

  20. Fuadi, F., Afrizal, A., Shabri Abd. Majid, M., Marliyah, M., & Handayani, R. (2022). A study of literature: Cryptocurrency of syariah perspective. International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS), 2(1), 1–8. https://doi.org/10.54443/ijebas.v2i1.135

  21. Gaol, C. P. L., Morales, U., & Lopez, V. (2023). Juridical review concerning the legitimacy of cryptocurrency in Islamic law. At-Tasyrih: Jurnal Pendidikan Dan Hukum Islam, 8(2), 115–125. https://doi.org/10.55849/attasyrih.v8i2.148

  22. Glavina, S. G., & Asmyatullin, R. R. (2024). The fourth industrial revolution in Islamic finance: The case of digital currencies of central banks. International Trade and Trade Policy, 9(4), 169–178. https://doi.org/10.21686/2410-7395-2023-3-169-178

  23. Hairudin, A., Sifat, I. M., Mohamad, A., & Yusof, Y. (2022). Cryptocurrencies: A survey on acceptance, governance and market dynamics. International Journal of Finance & Economics, 27(4), 4633–4659. https://doi.org/10.1002/ijfe.2392

  24. Hamzani, A. I., Widyastuti, T. V., Khasanah, N., & Rusli, M. H. M. (2023). Legal research method: Theoretical and implementative review. International Journal of Membrane Science and Technology, 10(2), 3610–3619. https://doi.org/10.15379/ijmst.v10i2.3191

  25. Han, Q., & Liang, J. (2017). Index futures trading restrictions and spot market quality: Evidence from the recent Chinese Stock Market crash. Journal of Futures Markets, 37(4), 411–428. https://doi.org/10.1002/fut.21825

  26. Hassan, T. A., & Mano, R. C. (2019). Forward and spot exchange rates in a multi-currency world*. The Quarterly Journal of Economics, 134(1), 397–450. https://doi.org/10.1093/qje/qjy026

  27. Jihad, B., Lamrabet, H., & Oussama, B. (2024). Islamic innovation in financial technology: Islamic digital currencies as a model. Educational Administration: Theory and Practice, 30(5), 1810–1820. https://doi.org/10.53555/kuey.v30i5.2361

  28. Karianga, H., & Fernando, Z. J. (2024). The damage of the shadow economy: The urgency of addressing foreign bribery in Indonesia. Pakistan Journal of Criminology, 16(2), 783–796. https://doi.org/10.62271/pjc.16.2.783.796

  29. Khan, S. N. (2023). The legality of cryptocurrency from an Islamic perspective: A research note. Journal of Islamic Accounting and Business Research, 14(2), 289–294. https://doi.org/10.1108/JIABR-02-2022-0041

  30. Kharbanda, V., & Singh, A. (2018). Futures market efficiency and effectiveness of hedge in Indian currency market. International Journal of Emerging Markets, 13(6), 2001–2027. https://doi.org/10.1108/IJoEM-08-2017-0320

  31. Kirilenko, A., Kyle, A. S., Samadi, M., & Tuzun, T. (2017). The flash crash: High-frequency trading in an electronic market. The Journal of Finance, 72(3), 967–998. https://doi.org/10.1111/jofi.12498

  32. Kristardi, F. S. (2024, May 31). Review Binance Indonesia: Pilihan trading, platform, dan komisi 2025 [Binance Indonesia Review: Trading options, platforms and commissions 2025] [HTML]. Rankia: Komunitas Keuangan. https://rankia.id/review-binance-indonesia/

  33. Malhotra, M., & Sharma, D. K. (2016). Volatility dynamics in oil and oilseeds spot and futures market in India. Vikalpa: The Journal for Decision Makers, 41(2), 132–148. https://doi.org/10.1177/0256090916642686

  34. Malliaris, A. G., & Ziemba, W. T. (2013). Futures markets: An overview. In The world scientific handbook of futures markets (pp. 3–22). World Scientific. https://doi.org/10.1142/9789814566926_0001

  35. Mu’adzah, N., Rachmad, D., & Rusydiana, A. S. (2024). Abu Ubaid’s perspectives and the dynamics of digital currency in modern Islamic economics. IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, 13(1), 144–162. https://doi.org/10.46367/iqtishaduna.v13i1.1847

  36. Muedini, F. (2018). The compatibility of cryptocurrencies and Islamic finance. European Journal of Islamic Finance, 10, Article 3. https://doi.org/10.13135/2421-2172/2569

  37. Narayanan, P., Sebastian, T. K., & Karunakaran, N. (2024). Volatility linkages in commodity futures markets: Evidence from the rubber futures market in India. SDMIMD Journal of Management, 15(1), 109–118. https://doi.org/10.18311/sdmimd/2024/32928

  38. Nosić, A., Sedlar, D. K., & Jukić, L. (2017). Oil and gas futures and options market. Rudarsko-Geološko-Naftni Zbornik, 32(4), 45–54. https://doi.org/10.17794/rgn.2017.4.5

  39. Pakpaharan, J. T. (2024). Analysis in decision making for XAUUSD (Gold/USD) Pair transactions in futures trading. Jurnal Indonesia Sosial Sains, 5(10), 2587–2595. https://doi.org/10.59141/jiss.v5i10.1235

  40. Parameshwara, P., & Riza, K. (2023). Ideal management of social assistance funds as a prevention and mitigation effort corruption. Journal of Multidisciplinary Academic and Practice Studies, 1(3), 203–211. https://doi.org/10.35912/jomaps.v1i3.1529

  41. Prasetiyo, L., & Janah, U. R. (2022). Cryptocurrency as money: Islamic monetary system perspective. Al-Tahrir: Jurnal Pemikiran Islam, 22(1), 71–94. https://doi.org/10.21154/altahrir.v22i1.3617

  42. Rahardja, U., Chen, S.-C., Lin, Y.-C., Tsai, T.-C., Aini, Q., Khan, A., Oganda, F. P., Dewi, E. R., Cho, Y.-C., & Hsu, C.-H. (2023). Evaluating the mediating mechanism of perceived trust and risk toward cryptocurrency: An empirical research. Sage Open, 13(4), 21582440231217854. https://doi.org/10.1177/21582440231217854

  43. Sapanji, R. A. E. V. T., & Saudi, M. H. M. (2019). Conceptual research: Sharia-based cryptocurrency. Journal of Advanced Research in Dynamical and Control Systems, 11(Special Issue 3), 138–143. https://www.researchgate.net/publication/334821645_Conceptual_Research_Sharia-based_Cryptocurrency

  44. Selcuk, M., & Kaya, S. (2021). A critical analysis of cryptocurrencies from an Islamic jurisprudence perspective. Turkish Journal of Islamic Economics, 8(1), 137–152. https://doi.org/10.26414/A130

  45. Şentürk, E., Coşar, B., & Arikan, Z. (2023). Relationship of cryptocurrencies with gambling and addiction. Psikiyatride Güncel Yaklaşımlar, 15(2), 348–355. https://doi.org/10.18863/pgy.1127924

  46. Setyagama, A., Susilo, W., Purwanto, Wahyono, E., & Su’ud, M. (2024). Indonesian government policy prohibits the export of nickel ore in the form of raw materials. Journal of Law and Sustainable Development, 12(2), e1163. https://doi.org/10.55908/sdgs.v12i2.1163

  47. Siswantoro, D., Handika, R., & Mita, A. F. (2020). The requirements of cryptocurrency for money, an Islamic view. Heliyon, 6(1), e03235. https://doi.org/10.1016/j.heliyon.2020.e03235

  48. Suhardana, N., Suhariningsih, S., Winarno, B., & Permadi, I. (2024). Mediation based on the value of pacta sunt servanda as a regulation of the interests of creditors and bank debtors in cessie. International Journal Of Humanities Education and Social Sciences (IJHESS), 3(5), 2275–2283. https://doi.org/10.55227/ijhess.v3i5.962

  49. Suharto, U. (2018). Riba and interest in Islamic finance: Semantic and terminological ıssue. International Journal of Islamic and Middle Eastern Finance and Management, 11(1), 131–138. https://doi.org/10.1108/IMEFM-08-2016-0109

  50. Wahab, S., Idrus, I., Muliana, H., & Azzahra, N. (2023). Regulations for organizing immunizations in Indonesia. SOEPRA, 9(1), 9–20. https://doi.org/10.24167/sjhk.v9i1.5938

  51. Wahid, N. A., Amanatillah, D., & Fitri, C. D. (2023). From fiqh to finance: Assessing bitcoin status in Indonesian monetary system. Share: Jurnal Ekonomi Dan Keuangan Islam, 12(2), 308–333. https://doi.org/10.22373/share.v12i2.17762

  52. Watugala, S. W. (2019). Economic uncertainty, trading activity, and commodity futures volatility. Journal of Futures Markets, 39(8), 921–945. https://doi.org/10.1002/fut.22018

  53. Xia, W., Xiong, T., & Li, M. (2024). Can night trading reduce price volatility? Evidence from China’s corn and corn starch futures markets. Journal of Futures Markets, 44(4), 585–604. https://doi.org/10.1002/fut.22483

  54. Yaakob, M. F. M., Nawi, A., Iskandar, R. R., & Habibi, A. (2022). The acceptance of cryptocurrency for zakat transactions: Experts’ view on its issues readiness. Environment-Behaviour Proceedings Journal, 7(20), 79–86. https://doi.org/10.21834/ebpj.v7i20.3419