Question Summary:
CFD Trading

Question Detail:

I intend to buy shares of a company which is offered in lots

Answer :

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.

_______

CFD TRADING

رد المحتار: ج 9 ص 665 

لأن القمار من القمر الذي يزداد تارة وينقص أخرى ، وسمي القمار قمارا لأن كل واحد من المقامرين ممن يجوز أن يذهب ماله إلى صاحبه ، ويجوز أن يستفيد مال صاحبه وهو حرام بالنص