Short selling the devil at work
When the price of a stock is going down, short sellers have a tendency to short the stock even more which means they will borrow shares from people who don’t necessarily want to sell and sell these shares creating artificial supply which drives the price down even further.
1. You are not allowed to sell something you’ve borrowed in any other business. A prophet asked God “A person asked me to sell him something which I do not possess, may I sell it to him? God replies “Do not sell that which you do not possess.”
2. Satan desires to create enmity and hatred amongst you through intoxicants using games of chance. Shorting is creation of risk in hopes of making money without any corresponding value creation or even the prospects for creating value that can justify the risk being created. When you buy and sell a stock no risk is created. This is why short selling has interest rates attached because risk has been created.
This is why shorting is prohibited by Islam.
1. You are not allowed to sell something you’ve borrowed in any other business. A prophet asked God “A person asked me to sell him something which I do not possess, may I sell it to him? God replies “Do not sell that which you do not possess.”
2. Satan desires to create enmity and hatred amongst you through intoxicants using games of chance. Shorting is creation of risk in hopes of making money without any corresponding value creation or even the prospects for creating value that can justify the risk being created. When you buy and sell a stock no risk is created. This is why short selling has interest rates attached because risk has been created.
This is why shorting is prohibited by Islam.
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Mrsjmunoz : I’m so over the games of the short sellers!
SANDRO 善子 : With the Fintech Apps getting popular, they attract million of people to trade stocks. They have no experience, and love to rock the boat from bottom . Many stock after hitting 52 wks low continue to go down and going down.
Hani Ayyash Mrsjmunoz : Don't hate the player, hate the game lol.
Mrsjmunoz Hani Ayyash : I hate the unfairness of the game. If they had a timeline to deliver and accountability that would be a fair game.
101885041 : Good insights thx
Hani Ayyash Mrsjmunoz : I totally agree I was just givin ya crap. sorry haha
Archangel Gabriel : I don’t even know how to short lol. Can we do that on moomoo?
Mcsnacks H Tupack OP Archangel Gabriel : Yes you can. You can borrow shares on a margin account then you sell those shares and that money is put into your account. So you would have say one account with 5000 in it owed except to close the account would require 100 shares of stock and then you would have one account with 5000 to buy the stock at any time you want. If the stock falls so you can buy 100 shares for 2000 then you buy those 100 shares and then return them and the account is put at O. Your other account will still have 3000 in it that’s yours to keep. That is shorting
Archangel Gabriel Mcsnacks H Tupack OP : Thanks for explaining. I googled and found shorting is to borrow shares from other people who are not using them at the moment. So I was thinking how do I borrow shares from users here lol.
Mrsjmunoz Archangel Gabriel : Infinite risk!
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