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
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuhu
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
Checked and approved by,
Mufti Ebrahim Desai