could you please reply brother
Wednesday is ok. I confirmed it from my broker ameritrade. you should also double check from the broker you are using.
Wa alaykum salaam,
Is it possible to activate stop loss after T+2 for each stock you buy?
I hope you are well,
My question is surrounding the ownership of shares.
The platform I utilise to purchase is called etoro. When I go to purchase a share it states I am buying the underlying asset. I also after purchasing become the owner of the share taking on the risk of what I have possessed. Is it then permissible for me to sell these shares after one day for example. As I have previously noticed yourself mentioning about t+2. In this case I own the asset before t+2 and is in fact immediate?
If you could look into the above pls
I am not a trader and not into this business. I am just looking for a long term investment and looking the shares which are Halal complaint through Islamicly, Zoya or IGF.
As per fatwas given above, just to make sure about the Capital gains investment is permissible which I have understood (please correct me if I am wrong). Can this be a month or yrs? If I buy now and if the prices go really up in couple of years then that capital gains is halal?
Jazakh Allah Khayran
Aslam o alikum mufti sahab.i want to ask you something which im not sure about. actually i got one mobile Application. where if you invest for example 1000 dollars it wil give you 3% commission or profit per day. what i have to do, i just buy 20 items and they give me immediately profit. like i bought 20 goods for 1000 dollars and they give me 30$ profit immediately. i just click on Buy item and they use my money and money goes away and immediately 3% commission is included and money comes back. and I’m not sure is it halal or not? it just shows me pictures that I’m gona buy wheelchair and i buy it. and it automatically give me 3% of profit or commission. can you please guide me is it halal or haram .Basically There is one button ‘Auto Grab Items’ if you click on it. it automatically does everything. and if you go to your history it shows red and green text. First red text which is for example 1000$ and then shows Green text which is 1003 $. and for 20 items it shows 1030$…i do nothing i just click Auto GRAB ITEMS and profit or Commission is included into my account. plus i don’t have any restrictions,like how much investment should i do and i can withdraw my profit and investment anytime i want. kindly guide me. is it permissible or not in Islam… And this statement is written at the bottom where we auto grab orders.
Hello, in order to give you the best
work experience, the platform
intelligent system will
automatically receives orders, and
your daily work will be completed
within 8 minutes.
In orderto avoid erroneous
purchase, your order is not
submitted within 2 minutes, and
the account funds will be protected
Funds need to be restored after the
order is manually submitted in the
kindly tell me is it halal or not. Thanks.
assalamualaikum,if i follwo swing trading like buy low take profite in high (support And ressistance)
Assalam alaykum Shaykh Faraz, the issue of day trading is affecting lots of Muslim traders both intraday traders and swing traders (as sometimes prices moves quickly so traders sell their shares before T+2). Is it possible for you collobrate with other scholars to look further into T+2 so we can get a more definitive answer please ?
Thank you ever so much for this resource, الله يفتحها عليكم for taking this effort for the Muslim community. It’s truly needed.
Can I kindly ask, Is day trading or trading on a trading Platform the same as CFD’s? Not clear whether CFD’s are different or whether all trading is this kind and therefore falls under permissable according to this fatwa or whether this is different? Trying to understand it before closing my account or taking further action insha’Allah.
Please do kindly respond, really would appreciate the clarity on CFD’s. (Contract for difference)
Surely when daytrading, the broker is actually lending you the money to buy the new stock?
So it’s a completely separate transaction, so all ok (assuming no interest of course).
Reason I say this is because the broker hasn’t received the cash from the sale, so you buying the next stock must be a loan from broker to you. Then when broker receives the cash, the repay the loan.
great stuff, thanks for sharing such a valuable content
In binance spot day trading is halal
Plz give a ans of my question
Is day trading halal in binance spot trading
Plz give me a good ans
Is it halal spot day trading?
Never use leverage when you trade stocks … if the market only consolidate you will be sloughtered…
Maximum leverage will be 4:1 like WEBULL is offering for day traders but overnight is reduced to 2:1 ( if you hold overnight position then trade with your cash account).
Asalaam alaykum, plz read my full comment
Are you able to review day trading and consult other scholars to have a more definite answer please ? At the moment the whole situation is very confusing and lacks clarity. As things stand if we’re cautious and avoid difference of opinion, swing trading is virtually impossible so it only leaves long term investment as a viable option. Below I’ve given couple of examples from my personal experience as a swing trader
I Bought a stock today (ticker $VVOS) which went up 700% due to FDA news. I’m still planning to hold it for another 2 days to comply with T+2 but I’m pretty confident it will come back down sharply as the price is very extended. This is not the first time something like this will happen to me (although previously it’s been on a smaller scale). I’m not profitable trader so losing out on such opportunities to take profit really hampers my progress.
Also, as a swing trader putting a stop loss on T+2 is impractical and almost impossible to follow. Stocks are purchased at key levels and if this level doesn’t hold on day 1, price will usually continue downward sometimes quite sharply. for example if you buy a stock at $100 and plan to have stop loss at $95. If the stock breaks down on day 1 it’s quite possible that by the time we reach day 3 the price will be $75 dollars. Personally I use daily stops as using T+2 stops I would’ve lost substantial amount of money. I’m not advocating people should follow this but I don’t see how a swing trader can be profitable by following T+2 for stop losses
I really hope you can address this important issue and consult other scholars as matter of urgency as it’s affecting lots of Muslim traders like myself. Perhaps investigating this further falls under fard kifayah ?
Apologies for any bad adab from my behalf and jazakAllah Khairan if you read it until the end
I have been searching for answers to the stop loss before T + 2 situation for quite some time. InshAllah this question can be answered.
From what ive read cryptoexchanges settle immediately. Unlike stocks exchanges where you arent directly buying and selling until the stock market closes and they settle all the accumulated IOUs. Whereas on crypto exchanges, all the trading actually stays on the exchange, albeit in your own account. Please correct me if Im wrong on this understanding.
Is this actually a problem because now we dont “own” the crypto currency on the exchange. We only own it if we own the keys in a wallet?
Swing trading is not virtually impossible… it can be very profitable but you have to be a bit more restrictive than the rest of the community.
For example, you can limit your trades to stocks with $1B+ market cap and 1M+ average volume which are expected to be more stable in price (i.e. will not crash abruptly).
Your $VVOS trade was still very profitable (I think 100%+?). Of course not as much as if you could sell immediately, but my point is that there is still plenty of profit while staying within Halal.
OmarBiH7: what is your broker? I would be surprised if they can settle your transaction immediately.
Zaytoon31: Robinhood (my broker) said you can assume the transaction is settled by market open on the 2nd business day, so in that case you could sell it on Wednesday; but just ask your broker when exactly is the transaction settled.