Forex Trading (CFD Contracts)
Wa’alikum Salam. This mode of investment does carry a higher level of risk, and one should approach it with caution. However, it does not fall into the category of gambling. The permissibility of such arrangements should primarily be determined by the parties directly involved or by qualified professionals in the field. Based on available information, Contracts for Difference (CFDs) are not inherently prohibited. Speculation is distinct from gambling. Speculative trading is generally a short-term strategy that relies on technical and sentiment analysis, aiming to benefit from price fluctuations within a limited timeframe ( much like how market forces determine prices in a general market economy ). In principle, all forms of trade are permissible (halal) except those that involve immorality or injustice . As long as such aspects are avoided, speculative trading is not objectionable. Gambling, by contrast, is based purely on chance and typically involves two or more participants, where one party’s gain is directly tied to another party’s loss. In such cases, the winning party has no legitimate moral right to the money obtained, which makes gambling fundamentally different from speculative trading.