Is share tradung allow in islam
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is share tradung allow in islam
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According to the view of most scholars in Islam, there is nothing wrong in the investment of shares and the stock market in its essence.
But the scholars have given a few guidelines to follow, to make sure that that the earnings of the company whose stocks are bought are legal according to Shariah.
The three main factors that make a stock haraam according to the scholars is as follows:
The company should not deal in a product which is declared haraam in its essence in Islam. Eg. alchohol, prostitution, usury, pork, etc.
The company should not deal in a product which is used to harm a muslim country. Eg. Arms manufacturing in a pagan country, etc.
Only the pure buying, holding, and selling of stocks is termed halaal by the scholars. All types of other derivative transactions like shorting the stock, buying calls, selling calls, buying puts, selling puts, straddles, or any other variations are not lawful.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.
Your Brother in Islam,