Fatwa: # 36603
Category: Financial Transactions
Country: Denmark
Date: 22nd August 2016


Day Trading


Assalamu alaykum respected mufti sahib

Is it permissible to daytrade stocks.. for example if you own stocks in a company which increases by 10% and you sell it.. and Then at The end Of The day you See it has fallen til 2% and buy it back.. now from The same money you have more stocks in the company? Is this type Of trade permissible or is it Only allowed to invest in a long period Of time

Jazakallahu khair 


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

Day trading is defined as the buying and selling of a security/stock within a single trading day. Once the stock owned by the shareholder is sold, it does not belong to him. The repurchase of the stock at a lower price is a separate and completely new transaction. Day trading is permitted provided the underlying traded stock is Shariah Compliant.

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and approved by,

Mufti Ebrahim Desai

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]