Assalam alaikum I am a day trader of stocks. Is it permissible to short sell in Islam Short selling is the selling of a stock that the seller doesn’t own at the time of selling them. He sells them in the hope that the price of those shares will decline, and he will profit by buying back those shares at a lower price. Waiting for your reply. Jazakallah!
Answer
(Fatwa: 776/739=D/1429)
It is not allowed to sell an item which one does not own and possess, it is prohibited in Hadith. Therefore, making day-trading when you do not possess is not permissible.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband