Inquiry Regarding the Permissibility of Day Trading and Scalping in Islamic Finance

Dear Sheikh Sajib Umar

I hope this message finds you well.

I am writing to seek your esteemed guidance on a matter related to day trading and its compliance with Islamic finance principles.

I have been engaged in trading for several years, primarily focusing on technical analysis and short-term strategies such as scalping, often within very short time frames (like one-minute or five-minute charts). My trading is conducted through proprietary firms using demo accounts, so no personal capital is at risk.

My specific questions are:

Is such short-term trading, often referred to as scalping, considered permissible in Islamic finance?

Does the use of demo accounts in proprietary trading affect the permissibility of the practice?

I would greatly appreciate your insights on these questions to ensure that my trading activities are fully compliant with Sharia principles.

Thank you very much for your time and consideration. I look forward to your guidance.

Warm regards,

Walid Sultani