Is day trading halal?

[olenak]

Even if you know the strategy?

I'm not talking about the risk am talking about day trading itself

 

[hbc]

@olenak Modern scholarship seems to be about inventing as many rules as possible without firm concrete evidence from Quran or Hadith exploiting the concept of 'qiyas' analogies.

Instead of assuming daytrading is haram, ask yourself why would it be haram

also, fwiw - how much $ are you playing with? If the answer is less than $40k, you can forget about daytrading entirely.

 

[paulacs]

@olenak Depends what asset you’re trading.

 

[resjudicata]

@olenak Personally I have heard some people say it is and some people say it isn't. For that reason I'm staying away until i hear something concrete from someone well respected.

 

[rynldss]

@olenak I saw someone explaining why it is halal under a youtube video and for me it makes sense that it is halal :

I want to explain the remaining problems. Firstly is the problem of CFD's. To tackle the problem of CFDs you actually need to understand how forex brokers work. You have A book and B book brokers. B book brokers keep your trades within the broker and never put them on the interbank market, while A book brokers actually go to the banks and find the best price for you to do the transaction and settle it with them. These A book brokers become your Wakeel. A wakeel is an agent that helps you perform transactions without your presence being required. So the actual exchange of currencies occur through the broker and the bank in question. The broker will then issue you a CFD contract which represents the p/l of the transaction you entered, you may ask why the issue you a CFD contract instead of the money; it's because you're not trading forex for currency exchange purposes, rather you're doing it for speculatory purposes, meaning there is no need for delivery of currencies, which is why the CFD is better suited for retail forex traders. The broker as your wakeel will then handle the settling of the cash transaction on your behalf

 

[rynldss]

The final one will be short selling. Short selling is when you borrow an asset and sell it then buy it back later in return for profit. This is solved again by the broker serving as your wakeel, since you are not trading for currency exchange purposes but speculatory purposes, your wakeel will assist you in settling the physical transaction. on the short selling aspect I also said that the broker being your wakeel handles the settling of the transaction, which is permissible as your wakeel will serve as a business partner in this situation Also, the Hadith on selling without owning is misinterpreted, Faris Al Hammadi an Emirati scholar explained that the selling without owning is referring to a SPECIFIC item, not a general item, for example I can't sell YOUR phone, but I can sell a random phone l intend to drop ship

 

[rynldss]

Im not a scholar, this is just my opinion. Thanks