I came across a Hadith recently ‘’ Do not sell what you do not possess’’ which has put my Business dealings into question and i would like you to look into it for me.
I deal as a broker (middle man) between the buyers and sellers where I source goods and offer it to potential buyers and make my money on top of the sellers price. Most of my transactions are done without me having to put any of my Capital when purchasing the goods therefore there is no risk.
for example the seller offers me their goods for £1000 and then I offer it to the buyer for £1500, in which I make £500 profit. In this transaction the buyer and seller have no contact between them and the buyer sometimes assumes that I actually hold the stock when I don’t.
Dear Colleague,
Assalam alaikum
This is a very good question. May I ask if one acts a middle man in a transaction between 2 parties with no ownership of the item being traded, does each party (buyer and seller) need to know the selling price and final buying price of the commodity being traded?
May Allah bless you.
Working as a broker is permissible provided that you are not involved in the selling of haram products or haram structured transactions.
However, you should not lead people to believe that you are holding the stocks as otherwise, it will be considered as selling something that you do not own or something that you do not possess. So maybe you can let your customers know that you are a broker and this will solved the issue.