Stock Market

Discussion in 'Other Mad'habs' started by Ghulam e Mustafa, Jul 11, 2021.

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  1. abu hamzah

    abu hamzah Active Member

    The Disadvantages of Futures Contracts
    No Control Over Future Events
    One common drawback of investing in futures trading is that you don't have any control over future events. Natural disasters, unexpected weather conditions, political issues, etc. can completely disrupt the estimated demand-supply equilibrium.

    Leverage Issues
    High leverage can result in rapid fluctuations of futures prices. The prices can go up and down daily or even within minutes.

    True Fraud Stories: The Truth Behind Binary Options Fraud ...

    Options vs. Futures: What’s the Difference?

    For example, an oil futures contract is for 1,000 barrels of oil. An agreement to buy an oil futures contract at $100 represents the equivalent of a $100,000 agreement. The buyer may be required to pay several thousand dollars for the contract and may owe more if that bet on the direction of the market proves to be wrong.
     
  2. Ghulam e Mustafa

    Ghulam e Mustafa Active Member

    And one more thing is if company taking loans from pledging to bank then it's used to run company and that doesn't depend on the stock we own. The stock we own is in our control and the one more thing is the rise and fall of share is not solely depend on company it's the retail traders,operatots, and other institutions who are investing in it.
    If the big investor sell their share automatically the share price will decrease because the buyers are not willing to buy the share at high price. It's doesn't depend on weather the company perform well or not.
     
  3. Ghulam e Mustafa

    Ghulam e Mustafa Active Member

    Does this mean that we can't trade with non Muslim.
    How do we know if buyer Muslim or not we can't exactly say that who will buy our stock if sell..[/QUOTE]
     
  4. Alf

    Alf Active Member

    Wa alaykum as salaam. There is ikhtelaaf on the matter of stock investments, but futures and options are generally impermissible unless you knew the one you're buying the futures commodity from and selling it to are not muslims, which as far as I know is not possible online ( do consult a mufti on this though to be sure)

    Regarding stock investments, Mufti Nizamuddin says it's not permissible because companies take interest based loans( through bank loans and preference shares) to run their businesses and as a shareholder you would be liable for that. I asked him, how then is it permissible to take interest from banks that sell their shares in the stock exchange? (for that would mean a muslim could very well be a part owner of the bank and hence impermissible for muslims to take interest from such a company). He could not provide me with a satisfactory answer. I asked Mufti Akmal the same question, and he replied ( and even posted a video on youtube, apparently correcting his previous answer on the subject), that in such a scenario receiving interest from such a bank would be impermissible.


    Tajus Shariah was of the view that buying shares was not permissible, except if they were preference shares issued by a non muslim company. He said investing in shares was akin to gambling, hence impermissible.

    The Turkish sunnis, who own the hakikatkitabevi site, hold it permissible to buy and sell stocks, as long as the company is engaged in a halal business, regardless if they use usurious loans to run their business or not.

    Jamia Nizamia of Hyderabad, gave a fatwa allowing stock investments in companies doing permissible business even if they use usurious loans, as long as such companies are owned by non muslims.
     
  5. Ghulam e Mustafa

    Ghulam e Mustafa Active Member

    Assalamu alaikum
    Any brother can please provide a weather it is permisible to trade in stock market and in futures and options..
    Is there any difference of opinion in madhabs???.
    Please provide ans i am not able to get the correct guidance on this issue
     

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