Are CFDs, options and short selling halal?

Q: Are CFDs, options and short selling halal?

The major screening standards exclude all three. CFD - a leveraged contract settling the price difference on an asset you never own Option - a paid right, not an obligation, to buy or sell at a set price by a set date Short selling - selling a borrowed asset in the expectation of buying it back cheaper The analysis rests on gharar (excessive uncertainty), maysir (gambling), the sale of something not owned, and the interest embedded in financing and borrowing costs. InvestHAQ does not compare these instruments or the platforms that market them.

The major screening standards exclude all three.

CFD - a leveraged contract settling the price difference on an asset you never own
Option - a paid right, not an obligation, to buy or sell at a set price by a set date
Short selling - selling a borrowed asset in the expectation of buying it back cheaper

The analysis rests on gharar (excessive uncertainty), maysir (gambling), the sale of something not owned, and the interest embedded in financing and borrowing costs.

InvestHAQ does not compare these instruments or the platforms that market them.

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