Forex CFD Trading
1 ). Islam does not say that one can only do business on the assets which one’s own and possess. Islam says to not devour others’ wealth via unfair means ( as per Quran 4:29 ). While applying this directive, Prophet (sws) prohibited many transactions which had an element of deceit and damage in them, including selling of something before its possession is taken. While many scholars consider it to be an absolute directive, we consider it an applied directive based on economic environment of that time. Current economic transactions need to be reviewed in the light of current economic environment; and if the legal environment and industry standards have eliminated or significantly reduced the element of deceit and damage from a particular transaction that was otherwise declared prohibited, then there is no need to consider such a transaction prohibited in today’s time as well. Therefore, the condition of physical possession for conducting a trade is not an absolute requirement according to Javed Ahmed Ghamidi Sahab. Prophet Muhammad (SWS) suggested it in the context of physical items in order to minimize any chance of misrepresentation. There is no prohibition for trading non-physical items in Islam. If it can be ensured that the business is conducted in a fair manner and there’s no deceit then it can’t be deemed as prohibited. Please see for details on this point : Discussion 61620 2 ). Regarding using leverage for CFDs : Specific loan given for a specific purpose with certain conditions do not make it Riba on its own. Riba is the amount charged on loan as a profit. If swap free accounts provide a way to eliminate the risk of Riba then it is recommended to opt that option. Also In Ghamidi sahab’s understanding of Islam, lending money on interest is strictly prohibited, however, it’s not impermissible to borrow money on interest. Please refer to the following discussion for details: Discussion 30863 __ For comments of Ghamidi Sahab , Please refer to the video below from 23:37 to 25:47 https://youtu.be/Oh55zJDO970?si=Vht2LU2BOih7sSA6&t=1417