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Trading rulings

Is short selling halal?

Answered by the ShariaQuant team

No. Short selling requires you to sell something you do not own, and the Prophet, peace be upon him, prohibited selling what you do not have. It also normally runs on a borrowed asset with a fee attached, which adds riba on top of the original problem.

How to be bearish without shorting

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

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