Permissibility Status Of Earnings By Trading Indices On Funded Account
The hadith “Do not sell what you do not possess” was said at a time when trade was mostly in physical goods, fraud risk was high, and securities were not well-regulated. Today, in financial trading, we trade company stocks, currencies, or indices, not physical goods, and the risk of fraud is minimal.Does this hadith still apply in modern financial markets, or is it limited to physical goods?In safe CFDs (Contracts for Difference), the position ends with the contract, and profit/loss depends only on price movement, not on a specific condition being true. Does this make CFDs permissible?Does zero-sum nature, intention to trade ethically, or the absence of harm to others affect the ruling? Jazakallah