Swing trade stops triggerd


im a swing trader. and ofcourse my position are longer then 2 days.
i also have a very strict risk management. sometimes when i make an wrong decission my stops get triggered on the same or the next day. is this okay to do ?



Wa alaykum salaam,

There is nothing wrong in this as long as everything else in terms of the transaction, subject matter is Shariah compliant.

selam, @Mufti_Faraz_Adam

thank you so much ! i thought even the stop loss falls under the t 2 days.
good that i can proceed trading again.



This is very useful as it potentially allows to reduce the downside risk for muslim traders.

However, why is it okay to stop out of a trade before settlement occurs, but taking profits before settlement should be avoided? My understanding is that the issue is of actual ownership, which would be the same in both cases before settlement occurs.

Would be grateful if you could help me understand this.


@Mufti_Faraz_Adam, can you help on this?

Wa alaykum salaam, a stop loss order is a sale of your position. It should also take place after T+2.

that’s pretty hard to calculate.
how can i protect my capital otherwise ?


okay so i would have to trade a higher timeframe… which has better probability. so this would be possible to do… waiting 2 days to get triggered. but what should i do if it happends the next day ?

or do i need to put stoploss after t2 days ?

Appreciate you clarifying, Jzk.

Incidentally, has the topic of day trading been discussed with AAOIFI to get their opinion on the issue?



day trading is a hard one. some say is permitted because the buyer establishes a constructive posession the moment the transaction goes through , as is evidence the fact that the buyer bears the full risk of ownership in terms profit or loss the moment the transaction goes through… some say you have to wait on delivery.

that’s what i’m saying liek it’s not hard for me to wait for 2 days to take profit because i swing trade anyway. but the moment i put my stoploss i’ts hard to say it will hit after 2 days when it goes wrong…

Wa alaykum salaam,

Yes, AAOIFI require that liability is transferred to the investor before they resell on the market.

Selam brother.

i’ve been backtesting data again. made a little change. my stop loss is much wider now. so far my stoploss did hit after 2 days. chances are way less to get hit on the next day. what should i do if in future he get’s hit the next day ?

can you advice me.



hi there, i was to get in touch in regards to some advice for stock trading, anywhere where i can contact you through private message?

Salam Alikom,

Does t+2 settlement also applies on crypto trading, or it does not apply as coins are transferred on spot to my wallet ?

Salaams, is the liability not transferred to the purchaser upon executing the transaction.

For example, I purchase a shariah compliant company and once that purchase has been executed I take on the risk of profit or loss instantly. Is this enough to be classed as being the owner?