Forex CFD Trading
Assalāmu ‘Alaikum wa Rahmatullāhi wa Barakātuh, I seek clarification regarding the ruling of Contract for Difference (CFD) trading. In CFD trading, there is no actual buying or selling of any asset. It is only a contract based on price difference, where profit or loss is settled in cash according to the movement of the asset’s price. The trader does not own or receive the underlying asset at any point. There is only price difference. No asset buying takes place, its just the price difference we are getting after closing the trade. Kindly advise whether such a transaction is considered a valid bai‘ (sale) in Shariah, or if it falls under gharar or maysirdue to its speculative nature. JazakAllahu khayran for your guidance.