Stock

The stock (also capital stock) of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly known as "stocks". A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 3 weeks ago

According to many leading scholars Ulama, it is permissible to trade in Futures and Options in the stock market as far as the shares or binds deal with lawful business only.

'Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answer updated 1 month ago

Short selling is permissible as far as you deal with shares of companies engaged in lawful business only and not indulged in unlawful activities like usury, alcohol, gambling, etc.

‘When you buy a share for a short while, you will own that share for that short period, then sell it.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 6 months ago

It is not allowed to invest in any share of a company which deals with unlawful business like usury, alcohol, gambling, etc. Giving away the profit from such companies does not solve the problem.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 9 months ago

Yes it is permissible to buy and sell in the stock market as far as the shares you want to deal with are from a company which is doing lawful business. Shares of companies indulged in unlawful business are unlawful to buy or sell or to mediate in as brokerage.

'Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 10 months ago

Yes it is allowed to invest in mutual funds as far you don't know that they use your money in unlawful business like alcohol, gambling, usury etc.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 1 year ago

1. Investing in the stock market is allowed as far as you avoid the shares or bonds of unlawful business like usury, alcohol, sinful films, gambling etc.

2. Khums is obligatory on your wealth on the your date of Khums. You must calculate the real market value of your stocks on your date of Khums.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 1 year ago

Stocks of companies dealing with unlawful business are Haraam to deal with in any type of dealing. If the company deals in lawful business only, you can day trade with its stocks.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 1 year ago

Direction of the market includes lawful and unlawful companies dealing with usury or alcohol etc. We are not allowed to deal with any unlawful company. Dealing must be with shares of company doing a real trade, not a gamble, and away from unlawful business.

'Wassalam.

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Even if selling alcohol is not the main business of the company, but only a small part of the income, it will be unlawful (Haraam) to buy or sell the stocks of such company.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answer updated 2 years ago

As far as the stocks are permissible, and there is no wrong done to anyone and no gambling is involved, we can't say that it is not allowed.

Wassalam.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 2 years ago

Dealing in stock market companies and indices is allowed as far as we avoid any company which deals with unlawful business.

Dealing  online is same as dealing directly or through brokers.

Wassalam.

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Amina Inloes, Amina Inloes is originally from the US and has a PhD in Islamic Studies from the University of Exeter on Shi'a hadith. She is the program leader for the MA Islamic Studies program at the... Answer updated 2 years ago

Asking how day trading is different from gambling is somewhat like asking how getting lawfully married for an hour is different from prostitution. There is an obvious similarity between the two things, while at the same time the situation surrounding them is somewhat different.

Certainly there are some shared pitfalls between investments and gambling. There is the danger of addiction, losing one's money, obsession with money and losing focus on other things in life, sometimes some ethical questions, and so forth.

At the same time, there are some things that surround gambling that are not usually found with investing, even short-term investing or day trading.

Gambling often has no benefit for society and is often based on a game or wager that will not benefit anyone, such as card games, slot machines, or online apps. (With a few exceptions such as lotteries that fund education) In contrast, the ideal behind investing is that it contributes to a product or business which benefits society. Whether or not day trading fulfills that ideal is another question, but at least the inherent goal is different.

Gambling has often been linked to violence and personal crime.

With investing, one actually gets an asset of value, regardless of how long one keeps it, whereas with gambling, one usually doesn't. So there is an actual sort of trade. 

Casinos and betting shops prey on people who are desperate and already down and are designed to make people lose, otherwise they will not turn a profit. Even in cases where the proceeds from gambling are being used for a greater cause (such as lotteries for education), the system is designed so that the player loses, otherwise there is no point in them running it. Basically it is just another way to extract money from people.

In contrast, the underlying hope behind investing is that the business or product succeeds and that it is a win-win situation, even if, in practice, people lose out, sometimes severely.

If you walk by any place of gambling, or even accidentally end up on one of their sites online, there is often a deep spiritual malaise and a cloud of despair. In some places like Vegas, this is covered up by glitter, underdressed women, and so forth. One doesn't tend to find this in places associated with investing. 

So, these are some of the ways that gambling and investing differ on a deeper level.

Basically it is difficult to be personally or spiritually healthy when being involved in gambling, whereas that seems to be less of a concern for people who work with investments, although of course many things in life can lead to spiritual concerns and one should always be careful.

Anyway, it is always good to think about the ethics and wisdom of what one is doing, and whether or not you personally consider day trading to be ethical is something you have to consider for yourself.

It is also wise to consider the possibility of severe loss and not to put any money into investments (day trading or otherwise) that one can't afford to lose. 

So this is a slightly different approach to the question than a purely shariah answer, hope it provides some useful insights.