You buy and sell shares within one trading day, this is called an intraday. with this option, You do not need to pay the full amount of the shares, the broker credit you the price of the remaining shares as leverage. Regarding with this, there arises two problem; first one is that the broker will impose a marginal interest fee, the second once is that it is not fully under our control. The prophet (PBUH)said: the buyer of any stuff should not sell it even before receiving it, this prophetic Hadith means that selling any stock should be permissible only after completing the buying process, so, in this case, these stocks will not be fully under our control. Rather. these stocks should be sold by the trader within the day, otherwise broker should sell at evening. By this reason, day trade which was ordered through intraday option, is Haram (prohibited)

in turn with this intraday trading, Day trade which is ordered through delivery (long term), this one lacks the two reasons that we mentioned in intraday delivery earlier; compelled selling of product and heavy interest fees levied by brokers. Here, we offer the full amount of the stock to the merchant thereby, we access the full control of that particular stock without any condition. in this case, the trading is Permissible (Halal)

 The first two days of buying the stock, the stock will be put in a condition ‘position bar ’and only after two days, it will be settled in your Demat account, then if you sell that buying stock on that particular condition (position bar), that stock will not be settled in Demat account, thus there is no doubt that the stock is not at your full control then. we can say that as if the  stock in “position” is like cash in your pocket and the stock in ‘demand is like cash in your bank account 

Sort selling is prohibited in Islam, short selling is that you borrow a stock and sells after, you buy another same stock to return it to the lender, in  this case, you sells stock which is not possessed by you so that it is haram, because the prophet said: the buyer of any stuff should not sell it before receiving it. when a man asked to the prophet about selling something that has not been possessed by him, then prophet answered: do not sell what you do not have

عَنْ طَاوُسٍ عَنْ ابْنِ عَبَّاسٍ رَضِيَ اللَّهُ عَنْهُمَا أَنَّ رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ (نَهَى أَنْ يَبِيعَ الرَّجُلُ طَعَامًا حَتَّى يَسْتَوْفِيَهُ

 عَنْ حَكِيمِ بْنِ حِزَامٍ رضي الله عنه قَالَ : أَتَيْتُ رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ ، فَقُلْتُ : يَأْتِينِي الرَّجُلُ يَسْأَلُنِي مِنْ الْبَيْعِ مَا لَيْسَ عِنْدِي ، أَبْتَاعُ لَهُ مِنْ السُّوقِ ثُمَّ أَبِيعُهُ ؟ قَالَ : (لَا تَبِعْ مَا لَيْسَ عِنْدَكَ)

                                                                                                           to be continued                                  

                                                                                            Next topic: future and option in Islam

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