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Is intraday trading permissible according to fatwa number 21716?

I read the fatwa number 21716 where you have mentioned that “For possession, physical possession is not necessary; rather the legal possession is enough.” I would like to tell you that even in intraday trading when you buy shares online you need to quote a buy price, if any seller willing to sell on that price he will also quote a sell price and the order will be executed and once it is done the risk and rewards gets transferred to the buyer that means if company goes bankrupt the buyer will bear it, on the other hand if there is some good news buyer would enjoy it, nothing would remain for seller. The other point is that it could not be gambling also because I will buy shares with intent to make profit, but if price goes down I can hold it for a long period, unlike gambling where one has to lose if other has to win. I hope I made these points clear, please advise whether it would be permissible?

Answer:

(Fatwa: 57/L=43/TL=1433)

If after the execution of order, the risk is transferred in a way that the buyer becomes the responsible of its profit and loss then it shall be lawful for him to sell this share. If this transfer is done in one day then it may be sold in one day as well.
ولا تشترط القبض بالبراجم لأن معنى القبض هو التكمين والتخلى وارتفاع الموانع عرفا وعادة و حقيقة (بدائع الصنائع.
However, it is better not to sell it until it is not delivered. It shall be unlawful to sell it before the transfer of risk because it will be selling before receipt. Some researchers have doubted the immediate transfer of risk after purchasing, the previous answer was written in that background.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

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This answer was collected from the official ifta website of Darul Uloom Deoband in India.

Tags: Bank, gambling

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