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I am in the process of buying domain names and then later on selling them for a higher price- assuming someone is willing to pay for them.

What is the ruling on snapping up something undervalued and later, within a few months or years, selling them for a higher price? I have heard somewhere that this kind of trading is considered Haram in Islam because it's against the fair market value and will be taking unfair advantage from people's needs.

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good question... for food this would definitely haram... another aspect: it might be a sort of gambling which is haram too... "trade" is basically buying at price x and selling at price x+y... and trade is generally allowed... –  Yahia Feb 11 '13 at 9:35
    
one thing to keep in mind: if what you bought is a long time in your possession then it might be necessary to pay zakat on it (based on current market value). –  Yahia Feb 11 '13 at 9:36
    
Do you know you will be getting a higher price for it? The way you have described this transaction, it sounds like a form of gambling to me. –  Hanif Feb 11 '13 at 12:11
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How can this possibly be haraam? If I buy some oranges, and sell them for the same price, how will I earn a living. The whole point of trade is to buy it for less and sell it for more. If you don't do that, you can't earn a profit... –  user3550 Feb 11 '13 at 15:13
    
<comments deleted> Comments are not to be used for debating. If you wish to debate, go to the chat. –  goldPseudo Feb 12 '13 at 3:23
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1 Answer

Extract from fatwa:

There is no limit to profits in trading, rather the matter is subject to supply and demand. But it is good for the Muslim, whether he is a trader or not, to be easy going in buying and selling, and not to exploit the opportunity of his counterpart’s carelessness to cheat him in buying and selling. Rather he should pay attention to the rights of his Muslims brothers.

Source of fatwa: islamqa.com

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