Fatwa ID: 07389

Answered by: Maulana Sarfraz Mohammad

Question:

Please I want to know if day trading is halal given the shares are 100% halal and no cfd or future.

So buying and selling many times per day the same instrument where settlement is t +2

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

Day trading is defined as actively buying and selling securities within the same day, trying to capitalise on short-term changes in price. There are a few factors to take into consideration in order for a transition to become permissible. Making sure that the shares are shari’e compliant and halaal. The other factor is that after purchasing the item taking possession of the item is necessary before reselling.

When buying stocks, it generally takes up to two days for a stock to get into the account of a person. Before this process is completed a person is not yet the owner of the shares, hence he cannot sell what he does not own. So buying and selling on the Day Trading will not be permissible.

Only Allahتعالي   Knows Best.

Written by Maulana Sarfraz Mohammad

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

«فتح القدير للكمال ابن الهمام وتكملته ط الحلبي» (7/ 135):

(قَوْلُهُ وَلَا بُدَّ مِنْ قَبْضِ الْعِوَضَيْنِ قَبْلَ الِافْتِرَاقِ) بِإِجْمَاعِ الْفُقَهَاءِ. وَفِي فَوَائِدِ الْقُدُورِيِّ: الْمُرَادُ بِالْقَبْضِ هُنَا الْقَبْضُ بِالْبَرَاجِمِ لَا بِالتَّخْلِيَةِ يُرِيدُ بِالْيَدِ، وَذَكَرْنَا آنِفًا أَنَّ الْمُخْتَارَ أَنَّ هَذَا الْقَبْضَ شَرْطُ الْبَقَاءِ عَلَى الصِّحَّةِ لَا شَرْطُ ابْتِدَاءِ الصِّحَّةِ لِظَاهِرِ قَوْلِهِ: فَإِذَا افْتَرَقَا بَطَلَ الْعَقْدُ، وَإِنَّمَا يَبْطُلُ بَعْدَ وُجُودِهِ وَهُوَ الْأَصَحُّ. وَثَمَرَةُ الْخِلَافِ فِيمَا إذَا ظَهَرَ الْفَسَادُ فِيمَا هُوَ صَرْفٌ يَفْسُدُ فِيمَا لَيْسَ صَرْفًا عِنْدَ أَبِي حَنِيفَةَ – رَحِمَهُ اللَّهُ -، وَلَا يَفْسُدُ عَلَى الْقَوْلِ الْأَصَحِّ، وَقَوْلُهُ