Short answer
Actually buying and reselling shares in compliant companies is permitted, even quickly: it is buying and selling (International Islamic Fiqh Academy, resolution 63). What becomes forbidden is buying on credit with interest, short selling, options, CFDs and contracts without delivery. Scholars also warn against speculation that resembles gambling.
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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International Islamic Fiqh Academy Organisation of Islamic Cooperation, JeddahUnder conditions
Buying and selling lawful shares is permitted; prohibited are buying on credit with interest, selling shares one does not own, options, contracts without delivery and selling indices, which is described as pure gambling.
Resolution 63 (1/7), 1992
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Diyanet Presidency of Religious Affairs, Türkiye (High Council of Religious Affairs)Under conditions
Short selling and warrants are forbidden; trading in shares must involve securities that are actually owned.
Fatwa on short selling (2020); decision 2025/64 (warrants)
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Depending on your country
- France
- The deferred settlement service (SRD) and the CFDs offered by brokers rest on credit or on contracts without delivery: they are excluded.
- Türkiye
- Margin trading (kredili işlem) and short selling (açığa satış) are excluded; so are warrants (varant), according to Diyanet (2025).
What is permitted
Buying a share, becoming its owner and then reselling it is a lawful purchase and sale, whether you keep the share for years or a few hours, provided that the company is compliant (see the Shariah screener) and the purchase is paid for with your own money.
What is forbidden
The International Islamic Fiqh Academy ruled out (resolution 63 (1/7), 1992):
- buying on margin financed by an interest-bearing loan from the broker;
- short selling borrowed or unowned shares, on the basis of the hadith forbidding the sale of what one does not have (Abu Dawud 3503);
- options and futures settled without delivery;
- selling indices, which it described as pure gambling.
CFDs (contracts for difference) fall under these prohibitions: you own nothing and bet on a price movement, often with leverage and financing charges.
Speculation and gambling
Day trading is not in itself maysir, because there is a real exchange of ownership. But scholars warn that an activity driven by very short-term bets, without knowledge of the companies and with repeated losses, comes close to gambling and harms oneself. Prudence calls for investing rather than betting.
The verses
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ إِنَّمَا ٱلْخَمْرُ وَٱلْمَيْسِرُ وَٱلْأَنصَابُ وَٱلْأَزْلَٰمُ رِجْسٌ مِّنْ عَمَلِ ٱلشَّيْطَٰنِ فَٱجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ ٩٠ إِنَّمَا يُرِيدُ ٱلشَّيْطَٰنُ أَن يُوقِعَ بَيْنَكُمُ ٱلْعَدَٰوَةَ وَٱلْبَغْضَآءَ فِى ٱلْخَمْرِ وَٱلْمَيْسِرِ وَيَصُدَّكُمْ عَن ذِكْرِ ٱللَّهِ وَعَنِ ٱلصَّلَوٰةِ فَهَلْ أَنتُم مُّنتَهُونَ ٩١
90 O you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone alters [to other than Allāh], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful.
91 Satan only wants to cause between you animosity and hatred through intoxicants and gambling and to avert you from the remembrance of Allāh and from prayer. So will you not desist?
The hadiths
Hakim asked (the Prophet): Messenger of Allah, a man comes to me and wants me to sell him something which is not in my possession. Should I buy it for him from the market? He replied: Do not sell what you do not possess.
لاَ تَبِعْ مَا لَيْسَ عِنْدَكَ "
Frequently asked questions
Is trading on a “commission-free” app halal?
It all depends on what you buy and how it is financed: real, compliant shares paid for in cash, yes; CFDs, margin or options, no.
Do brokers’ “Islamic” accounts solve the problem?
They often remove overnight financing charges, but if the product is still a CFD or a leveraged contract, the other prohibitions remain.