Is day trading permissible, and selling shares purchased on the same day before the financial settlement is completed, given that the shares appear immediately in the portfolio, while the proceeds of the sale are not available until one full business day later?
The inability to dispose of the stock trading price except after settlement within one business day does not affect the legality of selling shares, provided the seller owns them and has the freedom to dispose of them. It is stipulated, for the permissibility of trading shares in general, that the company's activity must be permissible, and that the company adheres to Islamic law in its dealings, neither borrowing nor lending with interest. There has been a difference of opinion regarding the legality of trading shares of mixed companies.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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