Is it permissible to do short term trading in the stock market where stock is brought and sold within days or hours? We do not get the chance to make any objection to their earning interests by putting their money in a saving account?
In the name of Allah, the most Beneficent, the most Merciful.
There is a difference of opinion amongst the scholars with respect to whether buying or selling shares are permissible. Mufti Taqi Usmani (DB) has given permission on buying and selling shares on the basis of the following.
- The company in its original form is not involved in unlawful trading i.e. it is not a bank, insurance or an alcohol company.
- The company’s assets should, not be in liquid form (not in the form of cash) but have acquired some fixed assets as well.
- A voice should be raised (protest) against the dealings of interest despite it being rejected.
- When the profits are distributed out then whatever percent has been received from interest should be given out as sadqah. (Fiqhi Maqalaat p.151 v.1 & Jadeed Fiqhi Masaail p.390 v.1)
With regards to the third condition, the views of my respected teachers of Darul Uloom Bury are that this condition only applies in an Islamic country such as Pakistan where objections may be raised against the company for dealing in interests and not in non-Muslim countries. Therefore, it will be permissible for you to buy and sell shares even though you do not have the chance to raise an objection against them.
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham