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Guidance On CFD Forex And Gold Trading On OctaFX
I seek your guidance regarding the permissibility of CFD (Contract for Difference) trading in Islam. In CFD trading, the trader does not own the underlying currency or asset (such as gold) but speculates on the price difference to make a profit. This speculation is based on detailed technical and fundamental analysis, including market studies, and is not akin to gambling.
Additionally, platforms like OctaFX and Exness offer swap-free accounts, ensuring that no interest (riba) is involved, even when using leverage. However, it is important to note that many scholars deem CFD trading impermissible, citing the hadith that mandates hand-to-hand exchange and ownership during trading.
Given these details, I kindly request your perspective on whether such trading on OctaFX, under the specified conditions, is permissible in Islam. I have also reviewed an old similar post (Discussion 86236), however, it fails to specify the specific permissibility of CFD trading on OctaFX. I have also asked for a Fatwa from your Fatwa form but haven’t received a response. Please, provide your views here also if you can.
ask.ghamidi.org
Forex Halal Or Haram - Ask Ghamidi
A lot has been asked and replied regarding forex spot. To the best of my knowledge I studied the views of Dar ul Uloom, Islamic scholars and
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4 Replies
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Guidance On CFD Forex And Gold Trading On OctaFX
updated 19 hours, 34 minutes ago
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Please refer to the discussion on this thread:
ask.ghamidi.org
Forex Halal Or Haram - Ask Ghamidi
A lot has been asked and replied regarding forex spot. To the best of my knowledge I studied the views of Dar ul Uloom, Islamic scholars and
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@Irfan76 i have already given the reference of the forum you have pointed out. However, this does not clarify my querry. Can you please answer this again in detail as why cfd can be halal even without hand to hand exchange and currency ownership.
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The condition of physical possession for conductung 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/deceit or damage to the other party. There is no prohibition for trading non-physical items in Islam. Therefore, if it can be ensured that the business is conducted in a fair manner and there’s no deceit then it cannot be deemed as prohibited.
Please see for details on this point:
ask.ghamidi.org
Permissibility Of Owning The Stock - Ask Ghamidi
Is owning the stock a compulsion for short selling to be halal? Cant we do short selling by borrowing rather than owning the stock. I'd like to know
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Apologies for asking the same type of questions again and again, but since this topic is quite sensitive I need to be sure about this. @UmerQureshi @Irfan76 @faisalharoon please answer this last question. When you say that physical possession is not an absolute rule you are referring to the following hadith right
“Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, hand to hand. If the types are different then sell however you like, so long as it is hand to hand.” Narrated by Muslim, 1587.
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