Is Trading in Stocks Based on Speculation Permissible?

Question:

Is trading in stocks based on speculation permissible?

Answer:

Wa ‘alaykum wa rahmatullah wa barakatuh.

I pray you are well.

What you have described is a permissible scenario. The speculation is just judgements on whether one should invest in something or not. These decisions are fine as long as the actual investment is halal and no other impermissible practices are involved.

I urge you to take our “Money Matters” course. Knowing the fiqh of finance can protect one from many impermissible scenarios when trading.

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim Reasat

 

Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History he moved to Damascus in 2007 where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.