Reconciling Scalping With Islamic Principles: A Qualitative Study on Stock Trading In Malaysia

The rapid development of trading technology has popularized scalping, a high-frequency strategy where traders aim to gain profits in seconds or minutes. Despite its widespread adoption, scalping raises concerns regarding its compliance with Shariah due to its speculative nature and dependence on rapid price fluctuations. Existing literature has yet to adequately assess this practice through the lens of Islamic muamalat, especially in Malaysia’s capital market. This study addresses that gap by exploring the permissibility of scalping in Islamic finance, focusing on potential issues such as gambling (maysir), excessive speculation (gharar), and deceptive pricing (bay’ al-najash). Employing a qualitative methodology, data were collected through document analysis and interviews with Shariah experts, then analyzed thematically. The findings indicate that scalping can be considered conditionally permissible if it is based on sound analysis and avoids manipulative or chance-based practices. The study concludes that scalping does not inherently violate Islamic principles when conducted ethically and responsibly. Contributions of this research include offering practical guidelines for Shariah-compliant scalping, distinguishing speculation from investment, and enhancing ethical trading awareness among Muslim investors. Furthermore, the study provides valuable recommendations for regulators and Shariah scholars to strengthen governance and compliance in Malaysia’s Islamic capital market.