Investment In Stock Such As Day Trading

Question: Assalamu Alaikum,

Is investment in stock permissible? Such as Day Trading?

Answer: Assalamu Alaikum,

Generally, investment in stock is permissible once the products of a company and stocks are halal it fulfills the requirements of halal buying and selling. The investment must also be free from speculations and uncertainty.

With respect to Day Trading, the scholars have written that this is not actual investing. Day traders watch the Market and buy and sell on short term price fluctuations. Many scholars have considered this to be close to gambling and thus, have prohibited it.

And Allah knows best.

Mufti Waseem Khan.

17-02-2015