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Is it permissible to use margin in stocks?

Answered as per Hanafi Fiqh by ShariahBoard.org

In stock they give you margin to use and we have to pay 5% to use the margin is it permissible ?

الجواب والتوفیق من اللہ

In this business, the brokers generally receive interest. Therefore, if interest is involved in a deal, it becomes forbidden.

However in case of a different arrangement, we will need more details to review and advise our judgment.

فقط  واللہ اعلم بالصواب

This answer was collected from Shariahboard.org. It was established under the supervision of the eminent faqih of our era, Hazrat Shah Mufti Mohammed Navalur Rahman damat barakatuhum.

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