Is Day Trading Haram in Islam?

thank you for joining us uh in this uh webinar once again yes uh quite a few people have joined in uh let's straight away get into the topic uh for this week's webinar which is a quite controversial topic uh a lot of people have asked us this question and it's the most popular question which comes up uh to us which is uh where the intraday trading is is permissible whether this is what are the rules of intraday trading although we have sent out an article uh which is also available on the app as well as on the uh the website in the blog section that says th

at rules of trading in which we have discussed uh at length what is the process of intra-day trading and what are the rules of it uh we decided let's open up this webinar uh so that it becomes an interactive session and we get questions and answer them as we go along based on our knowledge based on on the knowledge that the scholars have given us based on whatever the scholars have decided if there are questions which uh i might not know the answer inshallah i will strive to get it clarified by the sharia scholars and get back to you uh either by updating the blog or by sen

ding an email to all of you inshallah and that's that's the that's the agenda for today's webinar uh let's let's start uh we have quite a few people who have joined in alhamdulillah keep your questions coming uh keep writing your questions in in the comment section below uh so that we can answer them at the end of the webinar and as usual inshallah we will answer all the questions uh i am here and i am not going anywhere before i finish to answer all your questions now having said that i hope you have seen all the intraday trading rules on our website i will bring it up righ

t away uh so that you have a clear understanding of what i'm talking about and where i'm talking about if you go on the islamically website click on the blog link which is on top right you will get to see all of the articles that we have written so far and get to learn from it if there are any questions regarding the article put them in the comment section under the article and we will inshaallah reply to them as well in addition to that on the islamically app and the islamically web you have the section called the forum on the left hand side uh or the forums on the bottom u

h side of the app you can have a look at that if you have any questions in addition to whatever is there you can ask us those questions as well right i'll just share the screen currently and then show you what i'm talking about although a lot of you must have seen it but we see a lot of new people who have uh joined us as well i will just share my screen there you go this is the blog i was talking about uh if you can see my screen uh it's called rules of sharia compliant equity trading so it says why investing in sharia compliant companies is fine what are sharia compliant

stocks a little bit in the detail about the criteria what is purification uh last week's webinar was on purification this is a video of the purification on the app you can see the entire walkthrough of the desktop version as well over here and this is the section i was talking about which is intraday trading permissible then intraday buy first sell uh and then sell then another category is intraday sell first and then buy back to settle the trade intraday using interest free leverage and intraday using interest bearing leverage and then what is the uh rule about investment

in non-compliance stocks and what's the rule about investment in uh future options cfd auxiliary compliance stocks sorry and so on and so forth so please have a look at this article as well it's a very brief principle based article it doesn't go through in uh in terms of uh the exact ruling as to what is the sharia reasoning for it this just gives you an answer as to why these things have been what is allowed and what's not allowed all right quite a few questions coming in again uh but let's just straight dive in into the topic uh intraday trading uh it's it has been a qu

estion which has been asked uh quite regularly by a lot of users of islamically that is intraday trading permissible what are the rules of intraday trading a lot of uh other sources that users have referred to say that say that intraday trading is not permissible there are a couple of issues uh in in in the entire intraday trading uh uh space the first one that a lot of people have confusion about is the hadith of the beloved prophet which states and i'm paraphrasing it that do not sell anything that you do not possess now this is the principal rule that people quote in te

rms of saying that intraday trading is not permissible because it might involve a scenario where you are selling something which you do not possess let me clarify or let me elaborate this a little bit further in intraday trading it means that you buy something and you sell it quickly within the day so you buy a stock which is sharia compliant when the market opens and before the market closes you will have to sell it or square that position so when you do that where is the question of where is the question of delivery so essentially you are buying something and selling that

same stock before the market closes and you have not received delivery of that stock hence you have sold something which you do not possess that is the basic principle of confusion between a lot of people that have this dilemma of whether should we invest in a or whether should we adopt an intraday trading strategy the other principle of delivery that mostly all stock markets follow uh globally is that if you buy some stocks today let's call it t you will get delivery of that stock in t plus two that is not tomorrow tomorrow is day one uh of the stock day after tomorrow is

day two of that stock of and you have received delivery of the stock on day two when i refer to delivery of stock what i mean is since most stocks are digitally converted nowadays it gets credited into your depository account which is a digital depository account and you can see a line item in your digital depository account that you have received the share that's essentially what people refer to as delivery when you sell stocks out of your digital wallet or digital depository that line item or for that stock goes away that means you have handed back the delivery of the sto

ck that you have sold so there are two things one is when when you bought the stock what has happened two is when you get delivery of it or credit of that stock in your on your uh depository participant or your digital wallet or your digital custodian for that stock now this deposit happens not immediately it happens on after a couple of days a lot of people i'm repeating myself consider credit in this depository account to be akin to delivery and hence believe that once you get credit into your digital wallet or the digital depository of that stock it's only now that you ca

n sell the stock so let us go through these rules one by one and understand what is delivery the principle is very clear you cannot sell something which you do not possess now possession means delivery or rightful ownership on something that you have bought so let us try and establish when are you the sole owner or when do you have the rights ex sole rights over that stock if you acquire those sold rights over those stocks then you are entitled to sell let us examine that now let us get things out of the way which are clearly not compliant okay the first thing if you sell

the stock first and then buy it to square your position in the stock market on an intraday basis this is clearly not compliant it's clearly violates the principle of selling something which you did not possess this is called short selling as well in the market that means you buy something you sell something i repeat myself you come on the stock exchange platform or you come to your brokerage platform you see the price of let's say xyz as dollar hundred and you think that price of this is overstated or you you off your analysis you think the price of this stock will go down

so what you do is you do a sell order on the stock exchange that means you say it to the broker that you would like to sell this stock brokerage allow this hence you have now sold a dollar hundred worth of stock let's say you have sold one stock itself you now have to give this 100 stock to the buyer so what you do then is you wait for the market before the market closes you wait for the price to go down and when that happens you buy that stock let's say for example like 90 and you have bought that stock and 100 minus 90 uh is the profit that you make and this profit which

has been accrued on an intraday basis by selling first and then buying back that stock is clearly non-compliant it is not permissible all sharia scholars are very clear in distance that short selling is not permissible so what is the other way around the other way around is that you buy first in the market expecting the price to go up from where you have bought and is selling it on the same day when the price goes up or uh let's say the price goes down unfortunately but you have squared that position is this kind of a trade sharia compliant the principle that a lot of peop

le quote again i'm repeating myself for the benefit of the of new people who joined in the principle that a lot of people quote is you bought that stock that same day you've sold that stock the same day but since before selling it you did not get possession of that stock the reason they say that you have not got possession of this stock is because the stock exchange or the broker tells that you will get delivery of this stock in your digital wallet on a t plus one or a t plus two or a t plus three basis hence when you sold this stock on the same day you did not possess this

stock you are now selling something that you did not possess which is in controversial which is inc which is in contravention about which is which is in contravention to sharia principles hence this is not allowed let us examine what does possession mean possession means that you have exclusive rights over something you have a hundred you are you become the owner of something you are obligated to pay for that price of that something and you are now have all the rights to dispose of or do whatever you want to do with a particular thing that's when it is called ownership or th

at's when it is called possession if you study the contracts of most of the stock exchanges globally if you study the contracts of most of the brokers globally they clearly tell you that you as a trader become liable for two things upon doing an action since a lot or almost every exchange globally has become digital all of the records are now digital the entire processing of information for stock exchanges has become digital stock brokers and stock markets stock exchanges clearly specify when your buy order becomes enforceable when your buy order has become executable and whe

n your buy order has become executed in the market when you open your stock brokerage account you look at prices and there are bids and there are there are courts if i have used very simple language people are quoting something and people are bidding for some price right so there is a spread between these two prices there are sellers in the market at xyz prices there are buyers in the market at abc prices when the price of the buyer and the price of the seller matches a trade happens i don't need to tell you this but when you want to place a buy order you place a buy order

either saying that get me the stock at whatever price there is in the market or you tell that get me a price uh thank you get me a price at get me this stock at a specific price so it could be a market order or it could be a limit order saying that buy this stock at whatever price is available in the market or buy the stock at this specific price and you give this order at that point in time are you the owner of those shares the answer is no the reason because it has not executed once this order gets executed by the stock exchange through your broker in in the sense that

there is a matching seller for that stock and the trade happens on that there are two things which get which happens immediately the first thing is the money that you have deposited with the broker the digital wallet where you have kept the money or the linked bank account from where you want your broker to debit the uh uh the funds gets activated that means your money for that stock gets deducted and you are liable to pay for that boy order two you get a confirmation from your stock broker that this trade has got executed at the end of the day you also get a contract no

te which states which is a bit which is a deal between the broker yourself and the third party with the exchange regulating it stating the entire details the transaction that is what time you bought stock what quantity you bought the stock which company you bought the stock what class of share have you bought and the total value of the transaction including taxes and everything is calculated and send it to you by the end of the day of by that broker and that's called a contract note when i repeat myself again when you bought the stock you are your money gets debited or gets

blocked by the broker for the by purchase of that stock two you get an email confirmation or a digital confirmation in your my order section in in in your brokerage account or wherever uh they give you a confirmation of your trade or you get an entry in your trade book as well that you have bought a stock at this point in time you have not got credit in your depository participant account or a digital wallet account for this talk is this delivery is this possession sharia scholars have looked at that question especially in this scenario of digital exchanges electronic excha

nges and have ruled that once you get this confirmation from your stock broker that your trade has got executed and the money that has been due for this this trade has got debited from your account or the broker is now entitled to debit that money from your account although there may be a time lag between the actual buy order getting executed and the uh money getting debited from your account but if the broker gets entitled to deduct that amount you now become the owner of that stock at this point in time your ownership rights on this talk can be clearly established there i

s a straightforward record that you are the owner of this talk it is just a technical matter because of the clearing and settlement system that a lot of exchanges follow that allows for a delivery that allows for delivery of that stock in your depository participant in a t plus two manner or a t plus three manner or a t plus one manner because the exchange has to follow a couple of steps so that the entire exchange exchange of stocks uh exchange of stocks uh happens hence the settlement cycle takes the plus one on a t plus two basis kind of a thing for giving credit in the d

epository participant account that you hold that is not delivery delivery means possession possession can clearly be established if you have the full rights and clear title of anything this happens when you get a confirmation from your broker that this stock has been bought at this price or you you're the and the money that you have to pay for the stock is liable to be paid by you to the stock broker and hence onwards to the seller of the stock at this point in time since you are the owner of this stock you can most definitely go ahead and sell this stock on the same day wi

thin a couple of hours or within couple of minutes as well hence buying of stock on an intraday basis is permissible as soon as you become the owner of that stock so the critical thing for sharia compliant intraday traders is to figure out when are you getting that stock in your possession that would mean you become the owner now a couple of brokers clearly state that once you place a buy order within a couple of minutes or within a couple of seconds you will become the owner of that stock when these conditions happen like i have been reading a couple of big broker accounts

like interactive brokers robin hood uh vanguard uh and a couple of international other brokers and even in the subcontinent you've got brokers like amiri trade you've got records like uh zeroda in india which tells you at what what are your obligations and if you read the terms and conditions they will clearly state at what point in time you will become the owner of that stock now i have also written in my articles and my replies on the forum of islamically app uh as well as a desktop so in forum section there are a lot of people who have asked us what are the rules about int

raday trading and have discussed this at length i have said uh if you read those terms and conditions it will give you an idea as to when will you get the ownership of that stock all of them have clearly mentioned that once your buy order gets executed whether whatever kind of buy order it is you will get a confirmation through email through an sms through a contract note uh in this section of your portal that place uh in in your login when you see this action happening and the money being paid to the broker at that point in time you're the owner any sale transaction post

that event means that you have sold something that you have you are in possession of and it passes the sharia rule of selling something which you have possession of so i can't tell you exactly when this happens so please do read the terms and conditions of your brokerage account and figure out when whether this condition satisfies the condition of you being the owner of that stock so let's put the record straight that intraday trading is permissible once the event of your possession of that stock happens possession of stock should not be confused with deposit of that share

or entry of that share in your electronic wallet wherein you hold all your shares possession can take place much much earlier it takes place probably within a couple of seconds itself of that stock brilliant uh taher was saying from says that in north america these transactions happen instantly whether it's buy or sell order then it's it's brilliant if your broker confirms that as soon as you buy or sell it's an immediate change of record immediate uh settlement of these transactions instructions have been given to the stock exchange related when you get a confirmation from

your stock exchange it's at that point in time that you become the owner of that stock any cell transaction after this is completely permissible is absolutely no no ambiguity amongst the leading scholars of islamic finance that this intraday trading is permissible if this condition is met now i have taken you through the scenario of buying fast and selling later what are the conditions that has to be fulfilled between these i have taken you through the scenario of cell first and by later this is completely not permissible now let's move on okay another brother of the other

says that uh i get a confirmation of the stock but amount is deducted later but that's fine because if you read the terms and conditions of the broker the broker will tell you that within this period i will deduct the money but you become liable to pay that money to me so let's say your account is not funded and you have got you bought some stock you are now liable to the bank uh to the broker to pay for the stock and hence you will have to fund that account so it doesn't matter when when when if the money gets deducted instantly it's just technical matter as to how people

settle the funds and in a couple of countries settlement between banks have different timelines so if the technology of instant debits or instant deduction of of money from a particular bank account is not available it takes that settlement cycle so that's a technical part of it and it is not to be sorry it is not to be confused with uh since the money is not deducted i may not be in possession of things now uh let's let's look at this from a different example as well uh let's say you buy oranges uh from a particular market using your telephone uh you call up a trader and s

ay that i need to buy a hundred pg kgs of uh of oranges the trader knows you you have an agreement with the trader that if you give me a call and you say this i will buy that stock from the market and you will have you will become liable for paying me for these for this buy transaction now once this confirmation comes in from the person at the uh the market that 100 kilograms of oranges have been bought and please transfer the funds to me you will then go up and open your bank account and make a transfer before the transfer has been made you have become the owner of those o

ranges because of your action and your understanding with the seller that once i give you a call and say these in these things i will have to become the owner secondly now i i might be sitting 50 or 100 kilometers away or probably thousands of kilometers away from where i have bought these oranges if i now have a buyer for these oranges i can tell the seller that please dispatch these oranges to this other person rather than getting the oranges to to my go down and then selling them yes there is a hadith which says that do not sell any food stuff that you bought in a market

in the same place now there are a lot of intricacies regarding this this condition as well and most of it is not applicable on stocks because these are digital commodities these are not exactly physical trades which are happening and hence the entire stock exchange operation is is is is universal for the entire geographical region where it has a jurisdiction over so if you try and and appropriate this this hadith saying that i have sold this talk in the same place that i have bought it before taking possession of it the question that has to be asked is where are you taking

the possession off is it physically different from where the stock exchange is as as the hadi states now it's all digital it's it's it's all uh uh in in some place where it could be probably in the same building uh that the depository account is being held and the uh the stock exchange is also uh housed the entire marketplace is digital uh there is no specific place where that exchange happens hence this is the scholars say that this is is not an applicable uh rule that has to be apportioned from for uh trading of stocks since these are digital assets yes uh now i think i'

ve given reasonable clarification as to whether intraday trading is permissible and why it is permissible uh from a very basic standpoint by giving a little bit of background from what the scholars have quoted let's move on to leverage based trading a lot of people will have questions regarding leverage-based trading that means stock exchanges allow you to buy stocks without having funds in your account and they would lend you that money or a lot of people say that the stock broker lends you that stock to trade and when you sell this stock because it has a been a borrowed stoc

k because it has it is a borrowed stock when you sell this stock you had not been the owner of that stock or you did not possess that stock hence is leverage based trading sharia compliant i'll repeat uh the question that a lot of people ask is fine intraday trading is permissible i can buy first and sell later i got your point i got what the scholars are saying but can i do the same by using leverage or as a lot of people would say that by paying a margin to the broker as they call it this is not option trading i am referring to the point that let's say you want to buy the

stock of apple which let's say for example it trades at 100 today you do not have 100 in your account or you want to buy let's say 100 uh quantity of the stock and your broker allows you to place such orders that is orders worth ten thousand dollars although you might not have ten thousand dollars in your account but your brokers tells you that let's say you have hundred dollars in your account and i will give you hundred times the leverage so you can buy stocks worth ten thousand so you tell the broker find the stock price of apple is 100 you allow me to buy a hundred time

s of the amount that i have in my bank so that's ten thousand dollars you place an order of uh 100 stocks of apple at hundred dollars so that's ten thousand dollars but you had hundred dollars in your account hence the balance nine thousand nine hundred dollars has been lent to you or shares worth nine thousand nine hundred dollars has been lent to you by the broker since it has lent to you you have you did not become the owner of that stock hence if you sell this talk by before the close of market you have sold something that you did not possess question arises is this pe

rmissible intraday trading sorry yes this is also called margin trading intraday trading of buying fast selling later using interest free leverage is considered sharia compliant by the sharia scholars i repeat myself intra-day trading of buying first selling later using the leverage provided by the broker as long as it is interest-free it is permissible under sharia the reason being if it has been lent to you doesn't mean that it has been lent to you for usage it has been given to you on a deferred payment basis that means that you have you become the owner of that stock

just that you will have to make a payment for that stock before the end of that day or before the cut off as far as the broker mandates in his terms and conditions that means even if you have borrowed that funds and bought that stock that stock is but in your name you become you become the owner of that stock hence you are completely in control or you are the absolute ownership rights over that board by transaction hence you have the absolute right to make a sell after making that cell you are entitled to get compensation for it using that compensation if you have paid off

the broker because you're in profit now inshallah you have paid off the broker it's completely permissible now question has arisen and this i'm taking questions today as as we move along because these are technical things and it's better to uh to clarify a couple of things instantly one brother has asked us that interest free is not equal to fee free right yes if a broker charges you a fee which is fixed for executing a trade for leverage based trading it's fine absolutely fine as long as it's not interest interest in financial transactions is defined very clearly becaus

e most of the brokers all brokers and all exchanges are regulated and hence the terms that they use are all standardized if they say that for conducting intraday trade they'll charge you one cent two cent ten cents or a couple of rupees uh and they will not charge you interest if you square off the same day then in that case this is not considered to be an interest based uh lending it's a transaction fees applied for every transaction in the stock exchange and that's absolutely permissible uh in terms of paying that fee now uh this also opens up if leverage based trading is

permissible or inter rate trading is permissible given to the rule that i have spoken about there is a risk in this that a lot of stock exchanges that a lot of people talk about and the stock exchanges also clearly mentioned and the brokers also clearly mentioned about the risk that is the risk of either short delivery or the risk of either short delivery or no delivery at all that means that since you have bought the stock in the morning and you have not waited for the delivery or the credit of that stock in your in your depository participant account or your digital uh w

allet account which usually takes a cycle of t plus one t plus two or t plus three if there may be a scenario that your buy order which got matched to a seller's order and that seller may not have possession of that stock in his depository participant account or his digital wallet account and he may have also bought that stock on an intraday basis hence they may be a scenario where delivery of this stock or the execution of the stock may not happen on the stock exchange i fully understand the scholars fully understand the scenario and the principal question that they alway

s ask is when you bought your stock on the exchange through a legal mechanism through a framework that has given you the rights over that stock irrespective of the fact that your seller might not have title to it or let me correct might not be able to deliver the seller has title to it hence this stock exchange has allowed him to sell but the seller might not be able to deliver that stock to you does not make a defect in your buy order because the exchange has clearly mentioned that when a stock is available for sale it is their responsibility to ensure that this stock get

s delivered to you within a specified frame of time or the title of that stock gets transferred to you upon getting a confirmation from your broker or the money getting debited whichever is earlier or whatever the conditions are given in your brokerage account at that point time you become the owner if there is a short delivery or if there is a missed delivery or if there is no delivery the exchange might levy a penalty on you for selling this stock without having possession of it or without being able to deliver that stock this penalty does not does not invalidate your ow

nership rights on that stock you have not been able to deliver that stock because your seller was not able to deliver but when you bought it you had the clear title on that stock and your possession rights could be established hence you went ahead and sold that stock so if there is short delivery and if there's a penalty behind it it does not negate your ownership rights over that stock okay moving on uh intraday trading of buying first selling later using leverage which is interest based so couple of brokers would charge you interest for lending uh the defense to you in cou

ple of jurisdictions this is interest free in a couple of jurisdictions the practice of the market is to give it basis interest uh if there is interest involved in this lending process buy a broker then intraday trading buying interest based leverage is completely not permissible okay uh sid has asked us that majority islamic scholars prohibited inter-day trading what about this i have been speaking all along for the past 30 35 minutes of for the past 45 minutes now of what the scholars opinion is and i repeat myself that islamically does not give out its opinion islamically

it does not think what it thinks and then does these webinars or replies to your answers or does classifications of stocks on the islamically web portal or the app portal or the app basis its own interpretation now whatever we say is what has been discussed with sharia scholars who are the sharia scholars you can go on the islamically app into the profile section and see the sharia scholars that we have or you can go to islamically.com and see the sharia scholars that we have alhamdulillah alhamdulillah we have been blessed to be working with the best sharia scholars in the

world i use the word best i shouldn't be using it because sharia scholars are shariah scholars all of them alhamdulillah have the knowledge what i mean to say is we work with such sharia scholars who have been uh masha'allah the pioneers in the islamic finance industry they have specialized in themselves in the islamic finance industry and they are one of the leading scholars of thought in islamic finance this opinion comes in from them who have the experience of being on the sharia boards of hundreds of financial institutions both in the west as well as in in the arab world

they have looked at everything clearly looked at modern day trading looked at modern day exchanges looked at modern day brokerage accounts and have a point that intraday trading if these rules are satisfied if you are the if the possession or the ownership of your uh buy order is established you can go ahead and sell it even if it is within the minute within a second or within a day that's what the sharia scholars have been saying so that answers your question said now a lot of people would also come back and say that since this is akin to gambling that is i mean i am not

an expert in gambling but from a sharia perspective gambling is something where there is excessive risk involved that means risks which do not have a controlled factor risks which are arising from pure chance that's what is akin to what law common people refer to as gambling uh from a sharia perspective the uh the thing which makes a trade transaction or a transaction non-permissible if it has excessive risk when when this is quoted it means unsubstantiated risk uncalculatable risks when there are certain things like that which happens in a game of chance or in a game of g

ambling it is not permissible then a lot of people would say that stock trading is akin to gambling because things go up things go down and a lot of people say that it's a game of chance you may make money you may lose money hence it is gambling hence it should not be permissible the scholars have clearly a majority of scholars globally have looked at this viewpoint and have clearly rejected this viewpoint stating that the stock market operation does not have unsubstantiated risk yes it has a risk definitely it has risk but these risks have certain principles they have cer

tain principles as to how a valuation of a company happens why a stock price goes up why it comes down yes it may not be correlated with those uh with those uh underlying parameters but there is a logic to it there is a proper science to it there is a proper machinery to it in addition to that the stocks that you are buying has an economic use the stocks that you're selling has an economic use they are real assets they are real companies they are guaranteed by the stock exchange that yes there is a business behind it yes there is a financial activity behind it yes there is an

economic activity behind it a game of gambling or a game of chance or a game which involves excessive risk does not have any economic purpose behind it the reason you make money or you lose money does not have an economic rationale behind it hence gambling is not permissible but trading in stocks on an intraday basis if these things are are satisfied is not akin to gambling is not similar to gambling it's way different uh hence the sharia scholars have clearly a point that trading in stocks is sharia compliant there's absolutely no problem in that uh i have i have gone thr

ough uh a lot of basics uh with uh with you guys now coming to certain other aspects of of trading not intraday trading but trading before i take start taking all the questions uh uh quickly is uh first of all not many questions have come today looks like all of you have mashallah become experts which is very good if you have questions just keep putting the questions uh we have 90 minutes and we just have about 40 minutes left to answer all these questions whether the questions are relating to intraday trading or any other questions whatsoever uh let me answer these these q

uestions as soon as we finish before i move on to the next segment uh brother anis has asked a very interesting question he says the leverage is so high that the risk exists that i have to pay the broker afterwards again because of high loss of course the risk is high because you chose to offer the stakes that means you chose to buy things on leverage leverage is always is always a very tricky thing so just because you use leverage and the risk factor became very high does not invalidate the risk involved in the basic transaction what i mean to say is the basic transaction o

f buy first cell later on an intraday basis that risk remains the same or whether the price will go up or go down but you have multiplied that risk by taking leverage and not having that kind of cash in your uh with yourself hence the risk is your personal risk it's not a sharia risk that they that they say it's not an inherent risk of the trade transaction so if you are using leverage for anything if you use leverage to buy orange there is excessive risk in that as well whether the price of the oranges might crash or the oranges might not have a buyer till they kill the ro

t or you do not have adequate storage and you since you have taken it on leverage you will have to pay back pay back that that amount do not confuse yourself by saying that since it's the leverage has been used the risk has become excessive hence this this thing becomes non-permissible no anything that you do using leverage is risky hence if you are a sharia compliant trader try avoiding risk try avoiding leverage-based trading it's it's it's always risky you your entire capital can get wiped out your you become liable to your broke to the broker if if you one if one trade

goes wrong uh so that's that's something that that you have we are not investment advisors uh you guys are experts in that to answer your question in a short manner uh leverage does increase your risk but that does not increase the sharia risk or or or the risk through which sharia permissibility is to be calculated hence leverage based trading is allowed yes risk is involved in any trade yes the risk becomes quite high if you are using leverage based rate avoid it and manage it but that does not invalidate the uh the sharia permissibility of this trade transaction yes brot

her zakaria zakir says don't borrow to trade yes don't borrow to trade thank you for the questions uh yes i don't see a question which which i need to answer right away but uh i have answered the important question that intraday trading is it akin to gambling or not uh that's the same thought flow another popular question which comes in in the uh in the same way is a lot of people say that by today's sell tomorrow is a trade that uh is a trading option that the broker's allowed is called btsd is swing trading allowed uh it's very similar to intraday trading uh is margin tra

ding allowed uh all of these questions are same that is introduce a trading allowed or not the answer remains the same as whatever i have spoken all along so margin trading is allowed if you buy first and later it's allowed if that margin given by the broker in an interest-free manner and above all all of this is permissible if the underlying stock is sharia compliant and how do you check if the underlying stock is sharia compliant is by looking at islamically i hope all of you know how to check the stocks on islamically by the way for people who have not subscribed we have

a couple of more hours left before we close the offer i hope you are aware of the current offer going on uh for islamically subscriptions quite a few people have said that the prices that we have set for for subscriptions to islamically is quite high uh since we love you we want you to uh to trade in a sharia compliant manner and inshallah we will keep growing and we'll keep having more users but since we have these 30 35 000 users uh who have not been able to subscribe we've opened up uh the subscription offer saying that you tell us what price you you like we will analyz

e that and if we think a lot of people have bid at that same price we will accept your bid and you will get access to islamically app and desktop version for a way way way cheaper price than what is the full price so please go ahead i will put the link over here as to what is the link where you can make the offer please remember this is getting over in just about exactly three hours 30 minutes from now as you can see on the website as well this is the link i put it up here it's called offers.islavicly.com please make uh an offer over here at inshallah and do not forget to ad

d your card if your card has not been added that offer will be rejected because that's not a valid offer a lot of people have made really good offers which could have got accepted which could have given them access to islamically but they have not added the card hence that offer was rejected and hence they have lost out on the opportunity you still have three hours 30 minutes please go ahead and make an offer of the minimum amount that you you think you you're happy to pay and the maximum amount that you're happy to pay for islamically subscription for the full year for app

plus desktop hence please make an offer so that it gets accepted and as you've written in the terms and conditions only the top 500 offers will get accepted we have already accepted quite a lot of offers slots are very few now if is as you can see there is a counter or very transparent counter on the page itself which tells you how many offers have been made as we can see we have already been uh given more than 500 offers a couple of them did not have cards so they might they will be rejected so do add your card uh off in in the whole process it's very simple to make an offer

just select the markets that you want to access you will be shown the the entire price you will be shown the entire price and you can make a minimum and the maximum offer click submit you will be asked to login input your username password so that we know who you are and then add your card your card will not be charged immediately by the offer price your card will not is stored by our payment service provider which is stripe which has the highest level of security which has the highest level of security uh we will not charge your account or your card for any amount other t

han the minimum and the maximum that is an amount in the middle so please go ahead make the offer i've given the link it's called offers.islamically.com go ahead and utilize this opportunity let's come back to uh to the topic of the webinar before i start taking all the questions inshallah very soon and we've got quite a few questions now alhamdulillah i will quickly go through one of the related uh topics to uh trading of stocks is a lot of people have asked us that can i buy stocks which are sharia compliant by sector but they fail the financial ratio screening i spoke ab

out this in the last webinar as well but let me take a couple of minutes to to speak about this please note that you can buy stocks which are sharia compliant sharia compliant means they should satisfy the criteria the criteria is a combination of sector screening and financial ratio screening hence it has to be it has to be bought if it is sharia compliant that means it has to be has to be passing both the criteria you cannot buy a stock which is which is sector compliant and fails the financial ratio and say that i can purify or do whatever magic you want to do no it's no

t permissible if a stock is sharia compliant it has to be shared compliant both ways all right uh let's start taking the question since we have just about 30 minutes left in this webinar brother has asked i'm not sure what you're referring to but he's asking is trading in commodities yes trading of commodities on a spot basis is sharia compliant i'm not sure how many commodity exchanges allow for that most of the contracts that are available in commodity exchanges are for futures or options which is not offer futures of that commodity which is not a shared compliant activit

y so trading of commodity is permissible as long as it's on a spot basis has said that i hope you are covering ets and efts uh on the islamic platform inshallah very soon we will be covering all the etfs uh for you to have to figure out which etf is sharia compliant in addition to this uh the principles for our etf to be sharia compliant let me give it out to you very clearly one it has to be certified as sharia compliant by sharia border scholars to all the stocks in that etf basket should be sharia compliant three the entire product should have a sharia audit so whenever

you try and invest in an etf look for these things and you might not have to do all of this research because very soon islamically is going to start off an etf section on the portal itself so that you can also view all the eps which are sharia compliant uh ulfhut is asking me is trading in nifty 50 permissible uh ulfah trading in nifty 50 nifty 50 as i understand is an index trading in this index is not permissible because it is not sharia compliant trading in nifty 50 sharia is sharia compliant if you have that product available then you can trade in that if it is sharia co

mpliant mohammed zakaria is asking where is the islamically website i can't find it a lot of other brothers have helped him out thank you brother anis has asked me a question what about speculation or in relation to this topic is the arabic term for excessive risk i have already discussed this so if any transaction has excessive risk that transaction is not permissible in sharia i have already said that stock trading has principles has risk management principles has a principle through which risk can be assessed yes you can go wrong in that assessment that's that's that's e

ntirely different but it does not a lot of scholar most of the scholars have clearly a point that stock trading is not akin to entering into a harare based transaction or an excessive risk based transaction uh i have given you a small explanation earlier as well hence intraday trading is permissible it is not akin to a garage-based transaction that that's how uh the scholars have looked into it okay aisha has asked us a question i have a dmat account with angel angel broking is is a stockbroking account in india i am given to understand that i have 48 hours to settle once i

buy a share sometimes i buy a share for intraday and suddenly the market drops and or the price of the share drops so i decided to carry over the stock i either sell it the next day or the day after before the payment becomes due i may or may not have adequate balance in my account however i ensure that i am in position to pay in the worst case scenario of me being unable to sell within the two days is it allowed yes it is allowed if you're allowed to if you bought first either using leverage or without using leverage and if you have not settled it the same day if your broker

allows you to carry forward the stock the next day uh that's fine when you buy you are liable to pay for that stock and the broker allows you a couple of days to settle that's that's that's something which is permissible it has absolutely no problems in that uh yes i don't see a problem in what you're trying to do so what she says is um she's got a stock first not able to settle the same day carries forward to the the next day there is definitely a charge that the broker is going to charge you have a look at that there's definitely a leverage cost if you're if you're doing

it through leverage there's definitely a leverage cost of the leverage that the broker is going to charge you look at that whether this is interest based or if it is interest free if it is interest based the carry forward will not be allowed because the entire transaction has now got an element of interest it will not be allowed if the broker allows you to carry forward the stocks to the next day without charging your interest which i think will be will be very rare uh it should be fine absolutely no problems in that and she says that she's in a position to pay uh for that sto

ck which is also very good so there's absolutely no problem in in in this kind of trade uh taher usain says things have changed tremendously from the times of the prophet peace be upon him there should be some it's hard to modify some rules to the times today uh another sharia scholar uh because this is a principle of sharia that you're trying to talk about but let me tell you this these things that uh all of these things the entire stock trading mechanism is a product of which they had a stock joint stock company that the concept is not 1400 to 50 years old joint stock comp

any is a relatively modern concept just about probably 100 years old concept uh the sharia scholars have done this the oic that is the academy council the fifth academy has done there are various uh scholars board which is done there are various academic universities which has which have scholars uh uh on them has have done itself so yes it's being done uh it there is a lot of work which which keeps happening uh we are connected to all of these scholars and we keep we constantly see them uh asking for data asking for research because they're doing it and because they're tal

king to each other they're talking to a lot of scholars and they're trying to figure out what should be the modern dictat under the modern circumstances for all of these financial transactions so yes it's being done so there's no doubt about that islamically is also contributing to that by doing all these webinars by taking knowledge from you going back to the scholars and feeding them to to devise better to to devise better rules uh which are more in conformity with sharia this is also part of that process has asked a question again saying that what about stop loss selling

stop loss selling is sharia compliant is absolutely no problem stop loss essentially something that you say that at this price the market should uh the my stock broker should automatically sell this uh this stock or does not buy off beyond this price it's fine it's it's a commercial transaction nothing to do with charia stop-loss telling is as long as other rules of trading is satisfied if you put a stop loss it is completely fine asked us that what about option trading uh i have sent out a couple of notifications as well uh on the islamically app as well as an email on isla

mically uh email campaigns that we keep doing regarding options and futures let us not get into the debate of of uh options and futures and why they are not complying very very clearly conventional options and futures are not compliant there can be a variant of such kind of trading behavior using certain islamic principles which could be a salaam contract which could be a wad based contract or it could be a double double wa the base contract these are instruments through which you can do option trading uh akin to option trading uh in an islamic manner so i'm not too sure in

which jurisdiction these are available but i am akin to the fact that yes there are options uh there are instruments available which give you these facilities which are designed in a sharia compliant manner as well not too sure if you as a retail investor has access to that but yes there are uh products which can allow you to trade in such manner using sharia compliant principles just a second so conventional option trading is not permissible even if the underlying stock is sharia compliant if you trade buy an option or have a future on an option strategy or a derivative st

rategy on a sharia compliant stock it is not permissible in the conventional sense whether give me some light of margin trading i have already spoken about intraday trading using margin using leverage uh all of this i've already spoken about always says some brokers may debit money during the placement of the limit order itself that's fine they are they are technologically advanced they can pass instructions quickly brother anis says that he gets a confirmation in 30 minutes for his trade so that would be the point in time where you become the owner of that stock so if you do

an intraday trade before this 30 minute period it will not be permissible because the trade has not got executed or your broker has not confirmed that you have now become the owner of the stock you will have to wait for that 30 minute uh window brother abu sudhi has asked when i place an intraday buy order when it matches my price the share comes into my possession uh will i then become the owner of the shares if the rules of your brokerage account state that at this point in time you become the owner and he gives you a confirmation for this confirmation basically means a

proof through which you can establish your ownership rights once you have that event triggering in you can sell that stock tahir hussain says again in north america these transactions happen instantly whether it's a buy or sell order alhamdulillah very good then you can do intraday trading even more more frequently deduction of funds from your account is not uh is not uh a rule is not it is not uh a condition for ownership as long as your broker tells you the conditions of ownership and if that is met that's fine payment of money is actually a technical matter uh it doesn't

uh uh doesn't affect these uh this your ownership status payment for their stocks also considers the payment infrastructure in that jurisdiction and the instructions that you have given to deduct the money so whether the money is actually being actually left your account is not very material but are you liable to pay for that is this is material um super cathedral has asked what about gold stocks uh i'm not sure what you're referring to but if you're referring to mining companies then you'll have to look whether that mining company is uh sharia compliant on islamically if y

ou're referring to a gold trading company then you'll have to also again refer to islamically to figure out if that is sharia compliant if you are referring to a scheme which buys physical units of gold and makes a digital asset out of it and sends you a certificate that you can buy it's permissible as long as the entire scheme is sharia certified uh also it is done on a spot basis but the anishinaasta salaam contracts are not possible in the stock exchanges you'll have to see which jurisdiction you're talking you're talking about uh salaam is a sharia compliant uh derivative

uh instrument uh and it's it is certified by syria scholars to be to be islamic you'll have to see in which jurisdiction you are and if your stock exchange has that facility abu sudhi says that can i get a video of this all webinars will be available on our youtube channel inshallah very soon and as soon as this this uh if you have registered uh through the uh technology tool that we use webinar webinarjam for seven days this is available on the same link i am skipping the question that i've already taken yes also interest rates not equal to fee free right if you pay for a fe

e uh to do intraday trading that's fine if you if interest has been charged the broker will clearly tell you this is interest interest based leverage is not allowed fee based it should be fine as long as it's fixed and it not doesn't depend on it doesn't depend on the number of trades that you do i've already spoken about what about the risk of short delivery in case of intraday uh we've also spoken about uh intraday trading being akin to gambling uh and i've given you the opinion of the sharia scholars the opening of the sharia is intraday trading or trading in stock excha

nge is not similar to gambling operations gambling is a pure game of chance it has excessive risk in it hence it is non-compliant stock market also has risk but there is a science to it there is an economic activity to it hence it is permissible okay brother abu siddhi has asked a very interesting question they said that the broker is charging 0.03 percent or rupees 20 per executed order whichever is lower uh and he's quoting a name of the broker which is whether this is okay i have doubt because they don't have fixed because in this option they they are charging 0.03 or 20

rupees as you can see uh in in this in this in this scenario uh especially in the case of xeroda they clearly write in their uh offering document in their terms and conditions that the leverage provided to you if you square square the positions on the same day is interest free the charge of doing a transaction is either rupees 20 or 0.03 percent of the trade value so they have clearly defined that this is the charge that is 0.03 or 20 rupees whichever is higher and they clearly defined that there is no interest that they're going to charge on this intraday leverage because

they're regulated and all brokers are regulated uh they have to define these things clearly so this is i have read the uh the offering document or the terms and conditions of this broker called i am quite clear that this is not interest brother ani says that when you buy for example cfds you not really possess the stock for that reason it should be non-permissible you're absolutely right cfd's options futures derivatives are not compliant sid uh say that majority in islamic scholars prohibit intraday trading what about this i've answered this question already uh anis had as

ked a question the leverage is so high that the risk exists that i have to pay the broker afterwards again because of high loss it's the loss of of trading it this risk that you took does not make the transaction non-permissible it's a business risk that you have taken anything done on leverages involves high risk so you should be very careful tahir russian has asked limit orders are allowed yes they are allowed if they satisfy to all the other trading conditions that i have spoken about abu sudhi has answered that why are you buying shares for high leverage buy the shares wi

thin your balance alhamdulillah that's a very good approach second question is our stop loss and trailing stop limit orders allowed yes it is allowed it's it's a technical thing uh and again he says i believe the same rules which are good for equities are good for commodities including metals or oil or currencies yes it is almost the same says that can intraday be allowed in oil and currency uh as long as it is on spot basis let me also try and tell you one more thing that all of these uh apps which are which have this gamification kind of a thing when the price goes up and

price go down goes down and you just have to put a bar up and the bar down and the price moves up and moves down and then you make money these are not spot contracts okay something like options iq or i don't know there are so many ads that you you see nowadays uh these are not spot contracts read the terms of the actual financial contract that they're offering you these although they sell it as trading in forex although they say that it is trading in oil they are not spot contracts so have a look in the terms and conditions i said what are these contracts are these futures

derivatives what are these contracts have a look at that you will figure it out that they are not spot contracts if they are spot contracts then trading in them is absolutely permissible there is no problem in it brother abdul qader is asking me what is the least offer you guys accepted i can't tell you that right now try and bid you will instantly get the probability it's a moving uh algorithm you will get the probability of your bid getting accepted or rejected uh try putting multiple bits the best bid will get accepted or the bid which satisfies most of the other users con

ditions will get accepted this is the best opportunity for anyone to subscribe to islamically i would say all the 150 people who have come into this webinar should definitely bid should definitely try and access islamically you will get the full functionality you become a full member of islamically at your price the bids are closing in just about three hours if you go on the offers of the islamically paid the the link is is given in in the comment section i will put it up again for everybody it's called offers islamically.com do not miss this it is for your benefit we opened

it up for that one we get feedback as to what prices uh is is comfortable for you and whatever is comfortable to you if it is acceptable to us and if it is becoming becoming the average of whatever other people have bid for we will accept it uh do not forget to put the card is absolutely safe we are in the ethical business uh we will not charge your card uh if you have not bid uh we will not charge your card with the full amount uh we will not uh charge your card with any amount which is outside your maximum and minimum bid amount uh inshallah so be assured that if your bi

d is accepted it your card will be handled in uh in the most ethical manner uh and secondly we don't have your card details we're not entitled to keep your card details your card details are stored by an authorized payment gateway which is having the highest level of security you can see it on the website also it's powered by stripe uh absolutely safe and secure do bid it closes in three hours it's this is the best opportunity that you can get ever to subscribe to islamically app plus desktop for one full year at the price that you wish also remember a low bid uh as you might

be shown on the uh on the on the offer page might not be accepted ensure that your bid is reasonable ensure your bid is is amongst the highest we already have more than 500 bids uh we're accepting only 500 so the higher the bid the better your chance of getting accepted in spite of that being higher it's still lower than the original price hence you can choose your own discount we are doing this for you please take the benefit of this moving on to the other questions we just have less than 10 minutes uh before we should finish this off if you have any other questions please

post it and please do go ahead and make an offer as well uh for islamically uh and he says ask the question another question some brokers allow not to buy only a full share also to buy parts of the share are you then real owner of this part is it permissible uh i'm not sure what you are referring to uh a share anyway is a part of that company so if a broker says that you can buy a part of a physical share you are any which way a part owner of that stock now i'm not sure i'm absolutely not sure if there are 10 parts of one share as you conventionally call it uh i'll have to

study this and get back to you but i'm just thinking out loud if there are 10 parts to one share and all 10 of them should be bought in australia compliant manner all 10 parts should satisfy the conditions of intraday trade then you can do uh the short selling uh sorry sorry sorry then you can do the internet trading i'm not sure which broker allows this i have not heard much about this if you have any literature about it or a broker that does it please do send it to us and i'll have a look at it vasif has asked vasif has asked us a question if i position in a stock i sell

and buy in same way that person is not with that so you're asking that if i hold a position in that stock that is it is part of your purchased commodity and you sell that stock and then you buy it back from a sharia perspective what is happening is the sell is happening out of your holdings because you already held that stock your position is now zero you buy back you buy back that stock okay now the position is the same as in your dmat account or your dp account uh it's technical that the stock exchange doesn't send these stocks out and bring the other stocks in because th

ere are homogeneous in nature it it is it is it's perfectly permissible because you've sold it something that you have already bought you bought something which is sharia compliant again it may be the same commodity it may be the same share doesn't matter uh it should be compliant brother adil says please share sharia compliant criterias uh adil you can go on islamically.com website there on the top right itself i will show it to you right away for the convenience of all the other users as well this is the islamically website and you can see screening criteria over here plea

se go through the screening criteria it is very detailed if you should go over here it will also tell you if you click on your advisor at many uh islamic financial institutions so we've got the best of the best sharia scholars to help you out and guide us in in this in this endeavor of investing in an islamic manner let me come back to the questions abroad qatar says that do you suggest which stocks to buy to make a profit sorry we don't suggest uh stocks we are not an investment advisor we keep compliance independent of investment advice uh brother anis is asking a question

when the sharia compliance talks uh becomes non-compliant we can wait for 30 days and look if it switches again to sharia compliance but have 90 days you have set times at 90 days to sell but what it gets shady compliant again after 35 days and it didn't sell it yet very very simple uh our stock has turned compliant uh sorry sharia compliant stock has become non-compliant you have 90 days to sell this talk the first 30 days is for you you can wait if it becomes compliant if it does in 30 days then nothing uh you you come back to the original position that you are possessing

show your compliance talk if it be it is still remains sharia compliant non-compliant on the 31st day you have to sell that stock and let's say since the limit is 90 days and you have not sold that stock you have kept it and on the 35th day it has become compliant what happens now what you needed to do is that the five days in which it was non-compliant you will have to calculate the gains the notional gains during this period and purify that in that period if there is no notional gain in that period you can continue holding that stock without purification clear fayaj h

as asked the question is buying oil permissible yes it's permissible as long as it's on a spot basis uh taha usain has asked what about currencies yes you can buy currencies on a spot basis but all of the contracts that are available on the internet all the trading options uh that are available on the internet uh do not allow currencies to be bottom spot doesn't make any sense and hence you have to be very careful about buying uh currencies uh on the internet using exchanges uh kamal says is it best to invest in mutual fund or directly trade in stocks which is better when in m

utual and stockholder compliant brother kamal you're asking us an investment advice we do not give investment advice you can put the question in the forum section of the app and a lot of your co-traders will give you answers as to what is better broker i have select delivery can i buy and sell same day i've already answered this question yes you can buy and sell the same day if it has shared a compliance talk and it is without leverage uh or if it's if it is with leverage it should be interesting interest free leverage uh brother abu siddiq says can we buy sharia compliance

stocks within the nifty index uh you can buy it if it is within the sharia compliant nifty index i shared msci islamic etl certified i think also from the same scholars that are also your advisors but it seems to include also sharia not compliance talks from the perspective of islamically i'm not sure which stock you're referring to if there is a stock which uh is uh different uh you can let us know the principal reason why that would be different is msci uses an asset based criteria if i can see the if i can bring up the msci criteria msci uses uh the the financial ratios

on the asset basis so it's debt by total assets our share criteria is debt by market capitalization which is 36 months average or cash by market capitalization which is 36 months average so there may be stocks which may be part of a sharia index or uh etf but since i can see it is branded by msci msci has a different criteria than us uh whether uh sadiq says can you write in a website everything you talked about we keep writing about these things uh the rules trading are already there on the website it's on the block section we wanted to do this ama uh this webinar so that yo

u can send us the questions uh sikh says what about those islamic scholars who prohibit intraday trading i've answered the question from the sharia scholars perspective itself that intraday trading is permissible subject to the terms and condition that i spoke about brother abraham says are you from india and where is islamically from [Music] what do you think let it be exciting aisha says alhamdulillah sometimes you make a windfall gain in an intraday trading that you feel if you can rightfully use the gain have not even paid for it in the first place itself making a lot of

profit in an islamic manner is not a bad thing simple answer if you satisfy all the conditions and you make again alhamdulillah it's permissible being rich or being wealthy is not an islamic principle making a huge amount of profit using your intellectual capability is not an islamic it's fine uh aisha has asked do you have a write-up on trading in international markets not to show what you're referring to are the brokerage and other costs prohibitive not sure what you're referring to if it is on the investment side which broker to use which broker not to use we are not in

volved in it as of now we stick to the sharia principles of trading for now some scholars say swap fees are permissible gap between ask and bid uh don't think so uh are the serious scholars that we refer to the one the ones we work with do not allow this in a conventional manner if it is structured in an islamic manner it is permissible aisha has asked a very good question i've already answered it previously she said i buy some shares for intraday but carry forward and sell it the next day however i get a notification the third day that there was a short delivery in the fir

st place and hence shares are auctioned and i am credited a higher amount for the short delivery however i have already sold and hence now there is short selling and i have to buy the shortfall to square it off it is beyond my control how is it viewed it's permissible from a sharia perspective because when you bought it you satisfied all the conditions of being the owner you do not you did not know that the seller of the stock uh who is selling to you may not be able to deliver that stock uh to the broker it is beyond your control it is it is definitely uh not something that

you need to bother about hence it is sharia compliant abu sadist has asked me a question do you follow aof standards or other standards for screening i have answered this question in the last webinar as well uh to be very frank a fee has been set in the year 2004 by a very credible sharia scholars board but aoe standards may not give specifications for treatment of a lot of issues which have come in post 2014 they set the principle for sharia compliance uh we would not say islamically will not say that we do not follow ufe criteria but our criteria is different from eof crit

eria in the sense that it is an enhancement to the aoe criteria the sharia scholars who sat down in eof to build the criteria have also been part of the sharia scholars board of islamically as i have said islamically's sharia scholars chairman dr muhammad ali is also a part of the sharia scholars of aov not only he he is also in the board of trustees of your fee he is also on the sharia standards committee of eop we we had couple of scholars in the past couple of scholars that we work not only on islamically but on the other sharia scholars board that that we are the researc

h partners for uh are also part of the ofe hence any eof criteria that we have any issue upon we can discuss with the sharia scholars the same sharia scholars who have been a part of the ufc short answer our criteria is similar to eofy but it is in its current format different from your fee now when i say different it is an extension of the uf criteria what it says i'm shown the bit closer than 27 june is that a time zone issue yes the time zone issue it is going by the u.s time uh just two and a half hours are left it's still open you can go ahead and bid wasif says if i h

ave a position in a stock i sell and buy the same day yes you can do it do you have an islamic etf recommendations we don't do recommendations as of now we're not licensed to do recommendations we want to keep the sharia compliance status research independent what about purification of stocks is it required for sharia compliant mutual funds also yes purification is required on individual investments as well as on as well as on mutual funds if a mutual fund is sharia compliant that mutual fund itself will give you the answer as to what is the purification required mother vas

iv has asked the same question what aisha had asked or other people ever asked if i have a position in a stock i sell and buy in the same day and after the transaction my early position remains the same is it permissible yes it's permissible it's just a technical thing you have from a sharia perspective you already had stocks in your digital wallet or your other depository participant now you sell that stock all right you buy another stock okay when you sell this stock you are selling this stock okay when you buy this stock you're buying a fresh stock but because it the stoc

k exchange considers this to this transaction to be intraday they maintain your position of the same stock it's homogeneous it's not that this stock that you sold and this stock that you buy you bought is different all right it's homogeneous it's the same thing hence they they keep that stock in your dmat account it's permissible and he says to my question below with part of shares for example trading 212 from uk allows it one share is held by the broker for more than one user so you can't for example transfer your part of the share to another broker then it's not compliant

because if you do not have full ownership of that share you are not you can't sell that abu siddhi has said that what is the difference in screening of taxes and neofi uh cassius is an indian advisory firm uh which also does screening services uh eof is a standard setting body from what i understand uh tasis has a very low permissible uh threshold that means uh aov says that non-permissible incomes from operating activities of a company should be less than five percent taxes says it should be less than zero percent that means if a company is involved in any non-permissible act

ivity and they get even 0.0001 revenue from that activity which is non-permissible this company will not be allowed for investment whereas aov has a tolerance limit of five percent so that's one of the fundamental differences secondly from a financial ratio perspective as well there is a difference between uh the the ratios that aov follows and taxes follows are our screening criteria is closer to aov criteria okay uh there's a couple of questions about uh the offer page that's that's uh something that we can look into later i have a couple of questions to cover and i've a

lready exceeded my time i will quickly go ahead and answer this question is bitcoin buying sharia compliant uh it's a very tricky question it depends if you're just buying bitcoin uh for the heck of buying bitcoin um and reading it a lot of scholars considered it non-compliant because if you consider bitcoin as a currency trading in currencies on a spot basis is allowed but if you're buying a futures contract on it it's not allowed if you consider bitcoin as a commodity and you're buying it uh and you're selling it it's allowed if you consider it uh if you if you buy it as a f

utures uh contract then it's not you'll allowed to read the terms and conditions as to what your broker is allowing and how he is giving that bitcoin to you uh regarding zakat on paying shares uh it's a big topic uh inshallah we'll cover it next week or else in the meanwhile we'll we'll do a write-up as well so here they've asked how capital gain is screened i'm not sure what you're referring to essentially if you're saying that there is no no purification on capital gains it's only on dividends if that's what you're saying brother aadil has uh has says what is the sharia

criteria for screening stocks it's always already available on the app in the profile section as well as on the islamically website islamically.com call put option allowed no it's not allowed vasiv has said if i have a position position in a stock which knowing that the stocks are not in sharia compliance and what to do you have to sell that stock if you have bought a stock which is shared non-compliant at the start you have seven days to sell it out all the capital gains that you make capital gains not the capital capital gains that you make has to be purified purified would

mean it has to be given away to charity abu siddiq says that there is a stock known as kmc specialty of indian market and islamically passed and screening but in another app it failed they say following aov brother you can request a screening you can ask the question you can start a discussion uh or islamically app and question why it is uh sharia compliant and we'll give you all the details you can do the similar exercise with the other app which says that they are following eop criteria and why it passes compare the answers and you will get who is more credible and who is

uh doing the good who is doing proper research option is yours yes i know about ethica institute uh to learn about islamic finance uh not sure not looked into much please i have not really looked into it see you've got uh you've got an answer already that somebody else has done a certification from islamic financial medica and they said that in islamically mobile app when i tap on purify in the tab of some stocks and entered the details of dividend but shown zero as a result in that stock 100 interest rate yes that stock is 100 interest rate that means it doesn't have any imp

ure income if the dividend purification is zero with that it becomes to the end of this uh webinar uh the couple of things that i want uh to to point out one do utilize the offer it's getting over very soon two please let us know if this timing of the webinar and the date of the webinar is good uh you can drop a comment over here or send us feedback or info at islamically.com or send us a whatsapp on our business account uh indicating what is the best time that you like for having this webinar we're doing this act at different different times so that we can get the best audi

ences and so that you also can join the webinar as much as you can uh i think i think we have taken a lot of uh uh time already abraham center question saying that can i recommend any islamist certification courses as of now we uh have not looked into this inshallah if we have more and more questions like this we will we will get back to you uh and if there is a uh if there are any other questions we will have a look at it aisha says no it's too early please have it after maghrib ist we try and accommodate uh both the western world as well as the eastern world this webinar

was for the western world the last webinar was for the eastern world inshallah going forward we can have two webinars on the same topic at different timings if we have a lot of users from both sides of the world we don't mind doing this and in different timings but please do uh please do uh uh let us know uh brother and he said that the webinar was between 2 30 and 4 30 am in germany not the best time i agree it's not the best time uh inshallah we'll try and accommodate both the east and the west on separate timings the same topic can be discussed twice uh we are absolutely

fine with that uh i think i think that brings us to the end of the questions as well uh i always exceed the time a lot to me 19 minutes and we are already an hour and 53 minutes up uh thank you uh thank you for joining us and i hope all of you will utilize the offer all of you will make bids do give your cards in the offer closes just about about two two and a half hours from now uh this is the best time the best place and this also would give you an opportunity that islamically is for you another very important thing i wanted to tell you is please go to the app stores and

give a review about us it will help us in terms of improving it will also help the other users who are coming in to get a rounded view as to what islamically is you guys have gone through this webinar you know what islamically is you have alhamdulillah credibility and islamically the new users might not there are there are a couple of comments which are not very favorable for us out there please give us feedback on this on the plate on the play store whether you're an ios user or an android user we will keep updating the app we keep updating the technology we can definitely

give you more tools make this that thing better but in terms of credibility we have no compromise at all in terms of sharia screen we have no compromise at all and he says sorry last question is it possible to pay via paypal yes it's possible to pay via paypal just get in touch with uh the chat function over there and ask them to send you a paypal link uh for your uh offer if your offer is acceptable they will send you a paypal link as well absolutely no problem just get in touch with the chat function or on the whatsapp account that you have to everybody for attending this u

h i hope this has been useful if you have feedback regarding the webinar if you have feedback regarding my pace if you have feedback regarding my knowledge if you have anything in terms of this webinar as well if you think this is useful please do let us know on the through a review on the app store if you think this is useless and and we are doing a crappy job please do let us know through uh the uh the reviews on play store we really need it we really need more and more subscriptions we really need the word to spread please do tell other people as well to join islamically

and we will endeavor to give you the most well-researched the most up-to-date the best tools in this industry and to make this place islamically the best place for everybody else to invest in a sharia compliant manner in the cheapest possible manner thank you salaam alaikum [Music] you