QUESTION: I day trade options on major stocks, buying and selling contracts within the same day, never exercising them. I use a backtested strategy, manage risk carefully, and am profitable. I own the contract and know all terms upfront. Is this halal? Is holding a contract for several days also permissible?
QUESTION: I day trade options on major stocks, buying and selling contracts within the same day, never exercising them. I use a backtested strategy, manage risk carefully, and am profitable. I own the contract and know all terms upfront. Is this halal? Is holding a contract for several days also permissible?
01Oct
ANSWER:
The question is not clear!
If the stocks are halal and not dealing with riba or financing through riba and you are trading with your own money without going into options or hedging or similar financial tools that are based on ambiguity, gambling or the likes, this seems permissible.
QUESTION: I day trade options on major stocks, buying and selling contracts within the same day, never exercising them. I use a backtested strategy, manage risk carefully, and am profitable. I own the contract and know all terms upfront. Is this halal? Is holding a contract for several days also permissible?