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    Inquiry Regarding Stock Market Trading And Islamic Rulings

    Posted by Mohammad Omerzoi on September 15, 2025 at 11:32 pm

    Respected Scholar,

    Assalamu Alaikum,

    My name is Mohammad, and I am writing with deep respect and a sincere need for clarity. I must admit that I often feel confused due to the many differences of opinion among scholars. However, I have always preferred listening to Mr. Javed Ahmad Ghamidi’s explanations because of the rational reasoning behind them.

    I am currently involved in the stock market and would be grateful if you could help me understand the following matters:

    1. Stocks with halal core businesses:I trade in companies like Intel, MARA, AMD, NVIDIA, Lyft, and others where the core product itself is not haram. I avoid industries such as wine, pork-related food, or companies primarily involved in lending with interest. However, according to AAOIFI standards, stocks may be declared halal or haram based on financial ratios that fluctuate daily with market prices. As a result, a stock may fall in and out of compliance frequently. How can a Muslim practically manage this situation? Does every slight change make it impermissible?

    2. Bank accounts and interest on deposits:In today’s world, it is almost impossible to run a business without bank accounts. These accounts may generate some incidental interest income. What is the ruling on holding such accounts when the intention is not to earn interest but simply to operate financially?

    3. Companies taking loans with interest:Almost all companies borrow from banks or investors to finance their operations, which naturally involves some interest. What is the Islamic ruling on investing in such companies when the main business activity is not interest-based?

    4. Cash holdings of research companies:Some companies, particularly those still in the research phase, keep large amounts of cash in banks. While this may generate some interest income, their core business is focused on halal innovation and is often for the betterment of humanity. How should this situation be viewed?

    5. Trading indices and ETFs:Indices like the S&P 500 include a broad mix of companies, around 10–15% of which are financial institutions. Is it permissible to trade such indices or ETFs that contain both halal and non-halal businesses?

    6. Options trading:What is the ruling on options trading specifically?

    I raise these questions with humility, as I truly wish to follow what is right in the sight of Allah. At times I fear that when guidance is delayed or inconsistent, Muslims may lose opportunities or clarity in their financial lives. I am hopeful you can shed light on these matters in a way that is both practical and faithful to our deen.

    I would be highly grateful for your response.

    JazakAllahu Khairan for your time and efforts.

    Sincerely,Mohammad

    Mohammad Omerzoi replied 2 hours, 28 minutes ago 1 Member · 0 Replies
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