Can I recover initial investments made towards CFDs?
December 28, 2015
Q: Would it be allowed to recover my initial investment made into CFDs or do I call it ‘quits’?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
A: You cannot take possession of any money that you have received through the CFDs investments even if it is to recover your initial capital deposit.
As CFDs are invalid contracts, ownership of any exchanged assets will not be established but any money you have received through those dealings will be considered as a trust (amaanah) in your hands. You will have to recover your capital from the counter party by returning to them any assets they have given you in exchange. If you have utilised this amaanah for a further trade, that trade being invalid too is rescindable, and so you can recover any money you may have paid from this second counter party. After recovering this money, you must return it to the original counter party the money came from. If it is not possible for you to return any of the money to the original owners, then you should give this money into charity without the hope of being rewarded. On the other hand the money you have deposited into your cfd trading account can be withdrawn back for yourself prior to its first initial usage.