any investment/stock that we should avoid and how to learn the halal ones?
That basic question is why Zoya is around. @saad can point you to the FAQ page that has the list of industries that are not permissible and the other criteria used at Zoya. Everything outside should be compliant.
2 Likes
Thanks for answering 
Good time of the day,
According to the instructions of Shari’ah standards of AAOIFI which is highlighted in screenshots it is permissible to trade stocks taking long positions in intraday period (day trading) I am correct? Please, would love to hear more clarifications. Alloh knows best)
Day trading seems permissible from what I have read. Duration of investment does not matter. The underlying investment matters.
Please Check this page for how zoya checks Shariah
https://help.zoya.finance/en/articles/4189798-how-do-you-determine-shariah-compliance
Thank you for your reply, what you mean by underlying investment matters ?
Please let’s discuss it more clearly, so maybe other people take benefit as well
Meaning be it day trading or longer term investing in months / years, what is important is the asset/ stock is Shariah compliant
Example
Day trading in shares of a Bank or long term investing in a bank - both are not compliant. Duration does not matter. The underlying investment, in this a bank , is not compliant. Hence, both day trading and long term investing would not be permissible.
Example 2: Day trading in a compliant security such as Microsoft (or long term investing) both would be permissible.
Hope that helps.
Disclaimer: This is my understanding. I am not a scholar.
1 Like
Thank you for you clarifications, it is very useful)
1 Like
Before moving to new platform to trade stock I am checking all out, thus please if you are aware whether is it permitted to trade under margin (since some brokers offer 1:4 or 1:6 )? Is it halal trading method?
Thank you, now i found what i was looking from Book of AAOIFI standards, which indicates it is not permitted to trade under margin
As per shari’ah rules, you cannot sell what you don’t possess hence a stock cannot be sell until it is Registered and transferred to your account. It usually takes 2 to 3 days in this process hence day trading as per Islamic scholars is not permissible.
From reading and listening to some scholars, once the buy order is executed, you own the security. the settlement process is a technical aspect that takes 3 days. hence ,day trading sounds permitted. that said, day trading is a really tough way to consistently make money, in addition to the time requirements and tax inefficiency and possibly commissions.
Thanks for the clarity. What’s Ur take on swap free CFD trading? My broker claims it is halal.
Can you explain what CFD trading means? Do you own the underlying ? Or is it a form of derivative.
anyone have answer for this? if broker saying got islamic account in CFD stock trading, is it halal?
Could you clarify which broker you are referring to? I’m not personally aware of any truly halal alternatives to CFD trading at the moment. If the broker is simply removing the interest while keeping everything else the same, the “Islamic” label may be misleading.