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Forex Trading (CFD Contracts)
Assalamualaikum wrwb.. I have gone through almost maximum number of discussions which have been done on this platform w.r.t forex, CFD contracts, ownership, drop shipping (same concept of selling without ownership). Everyone including me scared of doing forex trading because of 2, 3 Hadiths of HAZRAT MUHAMMAD SAW. Explanation as follows
1. Don’t sell what you don’t own.
2. Ghalla bazar say pehlay khreda gya, par AP SAW nay mana frmaya kay isay bazar main la kar bechna hai .. us say pehlay nae.. aur is par pehlay bechnay walo ko saza bhi di gae..
3. Imam Abu Hanifa nay bhi mana frmaya kay dont sell what u dont own.
4. Imam hambal nay bhi mana frmaya. Dont sell what u dont own.
I am not going into leverage, options, futures etc. My only confusion is OWNERSHIP as well as POSESSION.
TO explain. If i have 1000 RS. I own and possess 1k. However if i gave it to someone as debt, then I own 1k, but its not in my possession, as per Islam i am not liable to pay zakat on.that even as its not in my possession,.even though i am still the owner.
What i understand from HADITH that OWNERSHIP and POSSESSION both are necessary for trade.
I am very keen to start forex but i am very much confused bcz of above HADITHs shareefs which I quoted.
In forex you don’t own, you don’t posses
Online forex trading is not trading of actual currency pairs. When you buy/sell anything on any platform, you enter a CFD contract with the broker and you profit/loss on price movements without possessing actual currency pairs. Not even in digital form.
So, its a trading of CFD contracts and not the Trading of actual currencies. Same goes for indices, stocks etc. so how it is halal. Islam say u can do business on the assets which u own and possess, problem is not PHYSICAL OR DIGITAL. Problem is ownership.
For example. If you own actual currency/indixes/stocks digitally then its permissble. But in all platforms where we are using funded accounts they are trading on CFD contracts, not actual assets even digitally..then how its possible that its HALAL based on above mentioned HADITH and FIQH Imams.
On going through almost maximum of the discussions which have been done on the platform.
The answer is based on one Ayat e Kareema of Holy Quran as below.
Believers! Do not devour one another’s wealth by wrongful means except through trading by mutual consent. (4:29)
May ALLAHPAK forgive me, but this seems a principle overall. There is no mentioning of details of business. Same like Namaz, QURAN PAK is saying to offer namaz.but how to offer you get it from Hadith.
Same goes for business. Do business as per The AYAT E KAREEMA and details you get from HADITH.
Please enlighten me with clear explanation. I am trying to find this answer since age, But not find the answer, the answer which I got from all school.of.thouhgts is that Its HARAM.
JAZAKALLAH… -
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Forex Trading (CFD Contracts)
updated 18 hours, 44 minutes ago
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Appreciate if someone response please JAZAKALLAH
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Appreciate if someone response please JAZAKALLAH
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Please response to this post.
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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’ welath via unfair means, the same Quranic verse quoted above in the question as well. 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 deceipt 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.
Details of Salah are found in Sunnah transmitted through ijma and tawatur, not from Hadith. Hadith is a historical record where we find different applications done by Prophet Muhammad (sws), explanation of religious directives done by him and Uswa of Prophet Muhammad (sws). This does not give rise to Hadith as a separate independent source of religion, rather it is explanation of an already established religion contained in Quran and Sunnah.
For more details, please see:
ask.ghamidi.org
Dropshipping Online Business - Ask Ghamidi
Business of Dropshipping Halal or Haram in Islam?There are scholars who say its Haram on the basis of these HadithsPlease tell how authentic the Hadiths
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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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