Question:
assalamu alaikum,
I would like to know if the following type of share trading is halal?
Contracts for difference is trading shares without having to physically own them. Contracts for difference (aka CFDs) mirror the performance of a share or an index. A CFD is in essence an agreement between the buyer and seller to exchange the difference in the current value of a share, currency, commodity or index and its value at the end of the contract. If the difference is positive, the seller pays the buyer. If it is negative, the buyer is the one who loses money.
For more on cfd click here.
I would really appreciate an answer thanks in advance.
Answer:
wa `alaykum salam,
According to ulama specialized in this matter such as Mufti Taqi Uthmani, CDF contracts contain elements of interest and gambling and as such are ruled as haram.
Imam Senad Agic
Head Imam (IABNA)
The Islamic Association of Bosniaks in North America
American Islamic Center – Chicago
