. However, smart people really need to know if there are certain types of stocks and practices that... carry out trading activities .
Let's learn more about how stock trades permitted and when prohibited under Islamic law.
Illegal or halal stock trading
There isandtwo methods are used to profit from stocks: investing trading. Both aim to capital gain, especially the increase in the value of the stock which is higher than when you first bought it. It is this price difference that brings returns once investors or trader sell it.
capital gain occurs because of the influence of supply and demand in the stock market. This supply and demand can be driven by the firm's good prospects of past performance and price movements. However, stocks can also experience the opposite situation, which ultimately results in losses in the form of: capital (decrease in share value).
Back to the method of earning through stocks. Trading and investment have significant differences in the way increase capital gains.
Invest in stocks using compounding , which re-enters the return on invested shares so that their value is multiplied double.Percent compounding earned every year and can further increase the value of the investment. That's why it's invested for decades.
share , the purchase of a large number of shares in a short period of time. Though capital gain of individual small stocks (due to short upward momentum), high returns that merchant accepted stems from a large number of transactions.
good in trading as well as investment stock online , the transaction process is actually based on rational analysis and calculation. Each actor is also prepared to face and minimize the risks that may arise.
The above goes against the idea of equating stock trading with gambling. We avoid betting or speculating in the stock world as it is based on irrational guesses and decisions. However, it is undeniable that the limit trading Halal or haram stocks are sometimes difficult to determine.
Things that Shares in Islam
In stock transactions, there are elements of activities between humans through assets or economic means (muamalah). maliyah) which is allowed in religion. This refers to the fiqh rules contained in the DSN-MUI Fatwa No. 07/DSN-MUI/IV/2000: "In principle, all forms of muamalah can be done unless there is evidence that prohibits it."
The law that allows share transactions is also based on the element of cooperation or partnership because the purchaser of shares provides capital to the company or issuer to develop their business.
Regarding the aspect, Kanny Hidaya, a member of the MUI DSN, explained that the stock transaction is in accordance with the following points of the fiqh pillars of the buying and selling contract.
- There are parties who carry out the transaction, namely the buyer who enters the asking price (bid). and the seller whobargaining.
- There are commodities traded, namely stocks.
- The stock price is listed there.
- There is an Ijab Kabul when the transaction is successful after the price bid and offer at the meeting point.
Stock trades is legal as long as Smart People refrain from conducting transactions that are prohibited by Sharia and Sharia capital market law, as stated by DSN MUI member Dr. They are Sahroni.
He added, trading and investment is allowed if the issuer that issues shares meets the following requirements.
- Do not run any business that is against Sharia principles.
- Total interest bearing debt does not exceed 45% of total assets.
- Total interest income and other non-halal income is not more than 10% of total operating income (income).
trading stock and on line can be done easily via Sharia Online Trading System (SOTS) or Sharia client fund account. This media does not include shares and illegal transactions according to the DSN MUI fatwa.
More specifically, the following make trading or investment that was originally permitted to be prohibited.
Things That Make Trades Share Haram in Islam
Determine whether stock trades it is lawful or unlawful. The institutions directly connected to the stock exchange have set boundaries among themselves.
According to Regulation OJK about sharia principles in the capital market, business activities prohibited if the type of business of the issuer of shares includes:
- financial services can be usurious, including insurance and conventional banking;
- buying and selling risk that contains an element of uncertainty (gharar) and/or betting (maisir); and
- produce, trade and/or provide goods or services which: 1) the material is unlawful (haram lizathihi), 2) not haram because the ingredients (haram li-ghairihi) as determined by DSN MUI, and/or 3) morally dangerous and dangerous.
Due to the short-term effect and the high rate of buying and selling, trader greater opportunities to fall into transactions prohibited in Islam, including speculation and manipulation. The following are some practices that are prohibited according to the MUI DSN Fatwa No. 80/DSN-MUI/III/2011.
- , selling shares borrowed from a broker to get a return on the purchase and returning it when the price drops.
- Continue and make the first trade based on insider information indicating there will be a large trading volume, which is expected to affect the price.
- alternative trading, where shares are actively traded by making transactions by various exchange members alternately and in seemingly reasonable amounts.
- Fake bid/ask, enter a buy or sell order at the best price level and delete it immediately reach the best price.
Confirm whether that stock trade Halal or Haram requires deep understanding. Not infrequently, smart people have to re-examine the fatwas of scholars if they are not sure about a transaction.
Even so, Smart People can easily avoid illegal stocks and practices by trade only in Sharia stock indexes such as the Jakarta Islamic Index (JII).
With the RHB Tradesmart Syariah application, Smart People can get the latest information on well-performing Syariah stocks and company financial news. So what are you waiting for? Interesting
conclusion about illegal or halal stock trading
Based on the legal sources of the Qur'an and the hadith of the Prophet above, it can be concluded that the stock trading law in Islam is legal and permissible if certain conditions are met. .
Because capital participation activities are basically very beneficial for the sustainability of the country's business cycle. In addition, investment activities can bring benefits to investors.
So, let's look at the terms of halal investment or stock trading:
- The company's business units are not involved in gambling or casinos and conventional financial institutions that contain usury
- in products and services that are prohibited by Islamic law do not become
- Operate at the time of issuance of shares
- Share transaction payments are made in cash
- Stock transactions do not contain elements of speculation (gharar), fraud such as concealment of defects (ghisys) and attempts to influence other parties that contain lies (taghrir).
. The Ulama Council (MUI) publishes a list of securities that fall into the Sharia category (DES).
Any company can fall into this category of Sharia securities list. However, if it does not conflict with various things stated in the DSN-MUI Fatwa No. 135 of 2020 concerning Shares No. 35 of 2017 concerning Criteria and Listing of Sharia Securities Listing as follows:
- The company's business activities do not violate sharia principles
- . Have a total interest-based debt of less than 45% of total assets
- Total income from non-halal elements such as interest is less than 10% of total operating income