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Is it permissible to buy and sell the same shares on the same day?

Answered as per Hanafi Fiqh by AskOurImam.com

Asalaamu alaikum warehmatullah wabarakatuh!

I work in a stock exchange with the brokerage house, who deals only in cash for instance if I have amount in my broker account I can purchase if I don’t have amount I can’t. I work online through my system I can sell / purchase and monitor my account When I purchase any Stock/Shares my fund automatically detect/debited from my account and when I sell them my account automatically add up / Credited immediately . Alhamdulillah I work only in” Shariah Complaint” stock   (Courtesy of Al-Meezan Investments Ltd. Chair by Mufti Taqi Usmani sb DB)

My questions

1)     With this scenario working on cash can I trade on intra-day basis buying and selling same stock in a same day?

2)     If the brokerage house gives me a branch to run, by keeping in mind the above mentioned scenario and Shariah Complaint stocks (comparatively very few in numbers) can my client’s trade on intraday basis? Because if not do so it’s difficult to meet branch brokerage target?

Waiting for you kind reply

Was salaam

Note: I have already post the question at askimam.org

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, if an individual purchases a share/stock, secures ownership of it and bears its risks, it is permissible for him to sell it on the same day[1].

In your question, you refer to your account being credited or debited. You did not refer to the ownership of the purchased stock.

And Allah Ta’āla Knows Best

Hanif Yusuf Patel

Student Darul Iftaa
UK

Checked and Approved by,
Mufti Ebrahim Desai.

www.daruliftaa.net

References
[1] [Fiqhi Maqalat, 1: 154, Memon Islamic Publishers, Karachi; An Introduction to Islamic Finance, p.210, Maktabah Ma`ariful Qur`an, Karachi]

This answer was collected from AskOurImam.com, which is operated under the supervision of Mufti Hanif Yusuf Patel. He graduated from Jamiatul Ilm Wal Huda, Blackburn, U.K, with a distinction in Alimiyyah degree. He thereafter travelled to Darul Iftaa Mahmudiyyah Durban, South Africa, to train as a Mufti under the tutelage of Mufti Ebrahim Desai and Mufti Husain Kadodia.

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