Question Summary:
Day Trading

Question Detail:

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 

Answer :

Answer:
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
Ismail Desai,
Darul Iftaa
 
Checked and approved by,
Mufti Ebrahim Desai