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I've referred to a lot of blogs, articles and documentation about shariah compliance in stock market investments but have failed to find the limits about the minimum duration to hold on a stock before you can sell it.

There is a perspective (like at islamweb.com) where people think of intraday trading as haram because you have not yet received the delivery of the stocks yet, so selling without delivery would make it haram.

I've also read that trading is altogether haram and investments are halal whereas another article which states conditions under which intraday trading can be halal.

There are many perspectives around the same with their own valid points. I prefer to be safe so I chose to restrict myself to investing rather than trading. The main unanswered question here is what is the difference between the two in the view of Islam... is selling the stock as soon as I get the delivery of it (around 2 days) considered as an investment or is there a larger minimum duration that I am supposed to hold it for?

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    There isn't any minimum duration for holding something before selling it. The Islamic requirement is that you need possession of what you are selling, stock trades are usually settled after one to three days so that is the problem with day trading. Islamweb is the more reliable source of those you have given. – UmH Feb 12 at 5:28
  • @UmH Thanks for the help. If you can post the same thing as an answer, I can mark it as accepted and close the question. – Kamran Ahmed Feb 17 at 10:30
  • This post on IslamWeb says that day trading might be Halal under conditions. – Kamran Ahmed Jul 7 at 11:56
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If it was permissible to buy the particular shares (depends on conditions like whether the business is halal and whether it has physical assets etc.) then it is permissible to sell them at any time.

Among the conditions for a valid sale (بيع) there is none that requires a minimum holding period, although you must ensure that you have ownership and possession:

لا تبع ما ليس عندك

Do not sell what you do not possess

Abu Dawud

من اشترى طعاما فلا يبعه حتى يستوفيه ويقبضه

Whoever buys food, he should not sell it until he has received it in full and taken possession of it

Muslim

To ensure this, the cautionary approach is to wait for settlement. For further information on Islamic finance please try to find books by e.g. Mufti Taqi Usmani.

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  • Thanks. I really appreciate it. I hope most of the curious people like me will. – Kamran Ahmed Feb 22 at 8:18

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