Is Spread Betting Allowed in Islam?

Answered by Shaykh Faraz A. Khan

Question: Is spread betting allowed in Islam?

Answer: Assalamu alaikum wa rahmatullah,

I pray this finds you in the best of health and states.

According to Investopedia, spread betting is “a type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), and investors bet whether the price of the underlying stock will be lower than the bid or higher than the offer. The investor does not own the underlying stock in spread betting, they simply speculate on the price movement of the stock.”

Based on this explanation, spread betting is a form of gambling, which is unlawful (haram).

And Allah knows best.
wassalam
Faraz

Checked & Approved by Faraz Rabbani