Using a margin trading account with a broker

Salaam,

I was looking at margin accounts with a broker and was wondering if it would be permissible to use such account. For example, I would never have a trade value larger than the money available in the account. If my cash value was £40,000, I would never exectue a trade with a larger value than that amount.

With a cash account, the settlement period is usually T+3 and you cannot trade with unsettled funds. However, with a margin account you would be able to trade/ withdraw the funds immediately.

My question is, would it be possible to trade with this margin account if I never actually leveraged my position and only traded below my cash value?

Many thanks,

Assalaamu alaykum brother,

What is the underlying investment and what type of financial instrument is being used in the trading?

I would actually be buying the shares, I will not be using any derivatives.

Kindly send a link of the platform for us to review.

https://www.interactivebrokers.com/en/home.php

Assalaamu alaykum,

In principle, you can use any broker as long as the transaction is Shariah compliant, the stock is Shariah compliant and the facilities one uses on the platform are Shariah compliant.