Is Shorting Crypto Halal In Islam?

Before it can be concluded whether shorting crypto is halal or haram in Islam, we must first look at what shorting crypto is. Bitcoin shorting is the act of selling a cryptocurrency with the belief that its value will decrease and you will be able to repurchase it at a lower price. Traders can then profit from the price difference in the market. Short-selling turns the traditional slogan of “buy cheap, sell high” on its head;instead of buying low and selling high, the trader sells the asset first and then buys it back later.

In this situation, shorting bitcoin would be done to hedge a long exposure. If you currently hold bitcoin but anticipate it will decline in value in the near future, you may want to hedge your risks by short-selling the digital coin at the same time

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