Salam all,
I have a question regarding stocks , im i able to sell stocks before 2 days settlement. for example i buy a stock however to manage how much im willing to lose i would add a stop loss so if price doesnt go the way i desire i wouldnt lose alot of money. and if this was to happen the same day would this still be shariah compliant
this is not always the case but i want to know as i use Stop loss when buying a stock to protect my investment from going below the desired amount im willing to lose
Wasalam
May Allah bless you.
You cannot sell stocks before settlement has taken place, even if its to manage the risk.
And Allah knows best!
Salam Mufti
thanks for the response
may i ask why not because as a buyer the minute i buy a share i bare the risk of stock if it goes up or down i will be the only one gaining/losing ( risk is transfered from seller to buyer) so i would be the owner of the stock that moment, so if i choose to sell same day for a profit or loss same day i would then need to wait for it to be settled as i will no longer bare any risks and wait till its sold so i can use proceed to purchase more stocks?