Document Details

Document Type : Article In Journal 
Document Title :
Sharia Compatible Futures
مستقبليات مقترحة متوافقة مع الشريعة
 
Subject : Articles 
Document Language : English 
Abstract : A Sharia Compatible Future (SCF) is a contract that is designed to achieve the objectives of the conventional futures contract and to be in conformity with Islamic transaction restrictions, which means that the essence as well as the object of the contract must satisfy the Sharia code. This implies the prohibition of interest futures. Currency futures must obsrve the Islamic restrictons of currency transactions, and the institutional setting must enforce the Islamic ethics and must devise a means to prevent gambling in the Islamic restrictions of currency transactions, and the institutional setting must enforce the Islamic ethics and must devise a means to prevent gambling in the Islamic futures market. A future is one type of derivatives used to manage risk. It is a very efficient instrument to hedge risks and is used by businesses as well as financial institutions to bring their exposure to risk to an acceptable level. In this article, Sharia compatible futures are developed. The economic functions of futures and the rationale for hedging are discussed. Islamic literature on futures and the sharia position with regard to hedging are analysed. Sharia compatible futures are then suggested.  
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 15 
Issue Number : 1 
Publishing Year : 1423 AH
2003 AD 
Number Of Pages : 22 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
عبدالرحيم عبدالحميد الساعاتيABDULRAHIM AL-SAATIResearcher  

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