Risk Management in Islamic Finance: An Analysis of Derivatives Instruments in Commodity Markets (Brill's Arab and Islamic Laws)

This study addresses derivatives instruments in Islamic finance. It highlights the benefits of these instruments, their legal aspects and the appropriate alternatives. The forward, futures and options contracts in commodity markets are discussed and the arguments in favour of and against these instruments examined. The forward contracts issue includes the possibility of trading gold in forward basis, the forward market for currencies and the possible alternative to manage related risks. With the examination of futures contracts, the main arguments against such a contract are addressed, for example the sale prior to taking possession and the sale of debt hedging and speculation. This study proposes khiyar al-shart and bay al-arbun as tools of risk management and alternatives to options. The sale of pure rights is at the center of the admissibility of options in Islamic law and is investigated comprehensively.

this Study Addresses Derivatives Instruments In Islamic Finance. It Highlights The Benefits Of These Instruments, Their Legal Aspects And The Appropriate Alternatives. The Forward, Futures And Options Contracts In Commodity Markets Are Discussed And The Arguments In Favour Of And Against These Instruments Examined.
the Forward Contracts Issue Includes The Possibility Of Trading Gold In Forward Basis, The Forward Market For Currencies And The Possible Alternative To Manage Related Risks. With The Examination Of Futures Contracts, The Main Arguments Against Such A Contract Are Addressed, For Example The Sale Prior To Taking Possession And The Sale Of Debt Hedging And Speculation. The Study Proposes khiyar Al-shart And bay Al-arbun As Tools Of Risk Management And Alternatives To Options. The Sale Of Pure Rights Is At The Center Of The Admissibility Of Options In Islamic Law And Is Investigated Comprehensively.

"This study addresses derivatives instruments in Islamic finance. It highlights the benefits of these instruments, their legal aspects and the appropriate alternatives. The forward, futures and options contracts in commodity markets are discussed and the arguments in favour of and against these instruments examined. The forward contracts issue includes the possibility of trading gold in forward basis, the forward market for currencies and the possible alternative to manage related risks. With the examination of futures contracts, the main arguments against such a contract are addressed, for example the sale prior to taking possession and the sale of debt hedging and speculation. The study proposes khiyar al-shart and bay al-arbun as tools of risk management and alternatives to options. The sale of pure rights is at the center of the admissibility of options in Islamic law and is investigated comprehensively."--Jacket The forward commodities market Is it permissible to exchange gold with paper money on forward basis? The forward market for currencies Concept, scope of futures contracts and speculation Sale prior to taking possession, sale of debt Futures market regulation Concept and scope Khiyar Al-Shart, risk management and options Arbʻūn risk management and options The sale of pure rights and the legality of options. This study addresses the derivatives instruments in Islamic finance and highlights their benefits and legal aspects. It also discusses the forward, futures and options contracts in commodity markets. Arguments both in favour of and against these instruments are addressed and several alternatives are examined as well.