I intend to buy shares of a company which is offered in lots
The size of 1 lot is 2300 shares
I can buy as many lots as i want
The price of 1 share is ~195 therefore the total valution would be ~450000
But instead of paying the full amount of ~450000, i pay only ~75000
Once purchased these shares will be in my possession for a month
If the price goes up say to 200 i get a profit of 5 per share and if the price goes down say to 190 i incur a loss of 5 per share
Is this type of trading halal?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
According to our understanding your query refers to CFD Trading.
A CFD stands for ‘Contracts For Difference’. When you trade CFDs, you don’t physically own the underlying asset, instead you are speculating on the price movement of that asset (financial instrument). This means you can take advantage of prices move up or down in value, on thousands of global financial markets including currencies, indices, commodities and more.
In essence, CFD is equivalent to exchanging fewer amounts of money for more, or vice versa. Such an exchange is not permitted in the Shariah as it falls within the purview of Gambling.
And Allah Ta’āla Knows Best
Anas Sharieff Qasmi
Student Darul Iftaa
Hyderabad, India
Checked and Approved by,
Mufti Ebrahim Desai.
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رد المحتار: ج 9 ص 665
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