What is the Islamic ruling on electronically trading Contracts for Difference (CFDs), where trading occurs on the price differences of assets (such as currency pairs) owned by the broker, without actually possessing them, and with each party benefiting from their respective share?

Contracts for Difference (CFDs) are financial derivatives used for speculating on price movements without owning the underlying commodity or asset. The trader profits or loses based on the difference between the opening and closing prices. These contracts are impermissible in Islamic law because the subject of the contract is not a fungible asset (mal), a usufruct (manfa’ah), nor a financial right that can be exchanged. They fall under the category of options and futures contracts, which the Islamic Fiqh Academy has unanimously deemed impermissible.