The limit of profit in trade
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What is the amount of profit in trade? Is it fixed at a specific percentage?
Answer: It is not fixed, and there is nothing in the Shari'ah that necessitates a specific limit. However, it is recommended for the believer to be lenient with his brothers and to be content with a small profit, out of mercy for his brothers and to cooperate with them in good. This is because, and Sahih al-Bukhari 6951, and because he (peace and blessings be upon him) said: Sunan Ibn Majah 2417Sahih (Darussalam) and because he (peace and blessings be upon him) said: So if he forgives his brothers and is content with a little profit, that is better. But there is no fixed limit, neither one-third, nor one-quarter, nor one-half. If he buys a commodity for forty and circumstances change, it is permissible for him to sell it for a hundred. There is no fixed limit, depending on the changes in the markets.
As for deceiving people, if the commodity is in the markets for forty, and he sells it to them for fifty or sixty without informing them of the prices, that is not permissible for him. Because this is injustice to his brothers. So if the commodity is sold in the markets for this... known in the markets, they sell it for forty, then he informs them, saying: The commodity is sold in the markets for forty, but I am not selling it for this amount. I am not selling it for this amount. If you want to buy it from me for more, there is no harm. Otherwise, you can find it in other markets. And likewise, if for example the food of a sa' is such-and-such, or the kilogram is such-and-such in the markets, he does not sell for more unless he informs his partner, saying: It is sold in the markets for such-and-such. Buy from me for more, or go to the markets and buy from there.
The result is that he does not deceive his brothers in prices. He informs them of the truth. If the price is known in the markets, fixed and known. But if the price is not fixed, it changes, increases and decreases, he sells for what Allah has allotted for him. Yes.
The presenter: May Allah reward you with good. Does this mean that he must adhere to the prevailing market price?
The Shaykh: Yes, he informs people of it. Yes, so that he does not deceive them. Yes.
The presenter: May Allah reward you with good.
Answer: It is not fixed, and there is nothing in the Shari'ah that necessitates a specific limit. However, it is recommended for the believer to be lenient with his brothers and to be content with a small profit, out of mercy for his brothers and to cooperate with them in good. This is because
The Muslim is the brother of the Muslim
المسلم أخو المسلمAnd whoever fulfilled the needs of his brother, Allah will fulfill his needs.
من كان في حاجة أخيه؛ كان الله في حاجتهWhoever is easy with (a debtor) who is in difficulty, Allah will be easy with him in this world and in the Hereafter.
من يسر على معسر، يسر الله عليه في الدنيا والآخرةMake things easy and do not make them difficult.
يسروا ولا تعسرواAs for deceiving people, if the commodity is in the markets for forty, and he sells it to them for fifty or sixty without informing them of the prices, that is not permissible for him. Because this is injustice to his brothers. So if the commodity is sold in the markets for this... known in the markets, they sell it for forty, then he informs them, saying: The commodity is sold in the markets for forty, but I am not selling it for this amount. I am not selling it for this amount. If you want to buy it from me for more, there is no harm. Otherwise, you can find it in other markets. And likewise, if for example the food of a sa' is such-and-such, or the kilogram is such-and-such in the markets, he does not sell for more unless he informs his partner, saying: It is sold in the markets for such-and-such. Buy from me for more, or go to the markets and buy from there.
The result is that he does not deceive his brothers in prices. He informs them of the truth. If the price is known in the markets, fixed and known. But if the price is not fixed, it changes, increases and decreases, he sells for what Allah has allotted for him. Yes.
The presenter: May Allah reward you with good. Does this mean that he must adhere to the prevailing market price?
The Shaykh: Yes, he informs people of it. Yes, so that he does not deceive them. Yes.
The presenter: May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.