Forex Trading (CFD Contracts)
Asslamoalikum , I totally understand that possession of the asset is not an absolute rule. I just want a clarification on the CFD contract where a person and a broker mutually agree on a contract for difference on price movement. And if a person opens a long trade the broker usually opens a short trade and vice versa and if I win the broker pays me the difference and if I loose I pay the difference. Is that not a form of betting/gambling ? Is it not unfair? Please guide me. Thanks
Okay and one more thing I asked the broker how they work and this is what they said “Our company operates primarily as an ECN broker , which means we pass client orders directly to multiple tier-one liquidity providers. Our business model is based on transparent pricing with ultra-low spreads and commissions , not on profiting from client losses. We earn revenue through commissions and spreads on trades, rather than taking the opposite side of your trades or benefiting from your losses. This ensures that our interests are aligned with yours — the more you trade successfully, the better the trading environment we aim to provide. Our focus is on delivering fast execution, deep liquidity, and fair trading conditions to support your trading success.” I was misguided by someone about the broker trading against us.