ISLAMIC COMMERCIAL LAW

This essay is presented in two sections. Section one is devoted to a market analysis of options, and section two to a Shari'ah perspective on options trading. There is no real shortage of information in the operational procedures of options and the various ways in which options are utilized as...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autor principal:	Mohammad Hashim Kamali
Formato:	article
Lenguaje:	EN
Publicado:	International Institute of Islamic Thought 1997
Materias:	Islam BP1-253
Acceso en línea:	https://doaj.org/article/eb598f0a2fbc45aeb2653756eeb6d622
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:eb598f0a2fbc45aeb2653756eeb6d622
record_format	dspace
spelling	oai:doaj.org-article:eb598f0a2fbc45aeb2653756eeb6d6222021-12-02T19:41:18ZISLAMIC COMMERCIAL LAW10.35632/ajis.v14i3.22802690-37332690-3741https://doaj.org/article/eb598f0a2fbc45aeb2653756eeb6d6221997-10-01T00:00:00Zhttps://www.ajis.org/index.php/ajiss/article/view/2280https://doaj.org/toc/2690-3733https://doaj.org/toc/2690-3741 This essay is presented in two sections. Section one is devoted to a market analysis of options, and section two to a Shari'ah perspective on options trading. There is no real shortage of information in the operational procedures of options and the various ways in which options are utilized as trading vehicles and hedging and risk-reduction devices. On the other hand, there is a shortage of in-depth information analyzing options trading from the perspective of the Shari'ah. The second part of this essay is tentative, in part because certain aspects of the issue need further development and research. The literature on the subject is in its early stages and has not reached a stage where consensus on issues can be identified. This is borne out perhaps by the divided opinion that we have at present over the basic question of the validity or nonvalidity of options from an Islamic legal perspective. I shall review these two opposing currents of opinion in due course. Suffice it here to note that this presentation does not seek to advocate the validity of those varieties of options which either directly or indirectly proceed on the charging of fixed interest to accounts. This may be said to be one of the distinctive features of the Shari'ah perspective on options-just as it is of all varieties of commercial transactions in Islamic law. My review of the mechanics of options trading in the first section of this essay broadly indicates that options trading does not proceed on charging of fixed interest, nor does it involve unwarranted risk taking and uncertainty (gharur). Options trading has a logic of its own, which is dominated by the idea of risk reduction and hedging against excessively large positions in its underlying assets. From the perspective of Islamic law this aspect of options is attractive and hence, from this perspective I make the case for the legality of options. I may also add here in passing that options trading cannot be equated with gambling or overindulgence in financial speculation. as it is basically designed to ... Mohammad Hashim KamaliInternational Institute of Islamic ThoughtarticleIslamBP1-253ENAmerican Journal of Islam and Society, Vol 14, Iss 3 (1997)
institution	DOAJ
collection	DOAJ
language	EN
topic	Islam BP1-253
spellingShingle	Islam BP1-253 Mohammad Hashim Kamali ISLAMIC COMMERCIAL LAW
description	This essay is presented in two sections. Section one is devoted to a market analysis of options, and section two to a Shari'ah perspective on options trading. There is no real shortage of information in the operational procedures of options and the various ways in which options are utilized as trading vehicles and hedging and risk-reduction devices. On the other hand, there is a shortage of in-depth information analyzing options trading from the perspective of the Shari'ah. The second part of this essay is tentative, in part because certain aspects of the issue need further development and research. The literature on the subject is in its early stages and has not reached a stage where consensus on issues can be identified. This is borne out perhaps by the divided opinion that we have at present over the basic question of the validity or nonvalidity of options from an Islamic legal perspective. I shall review these two opposing currents of opinion in due course. Suffice it here to note that this presentation does not seek to advocate the validity of those varieties of options which either directly or indirectly proceed on the charging of fixed interest to accounts. This may be said to be one of the distinctive features of the Shari'ah perspective on options-just as it is of all varieties of commercial transactions in Islamic law. My review of the mechanics of options trading in the first section of this essay broadly indicates that options trading does not proceed on charging of fixed interest, nor does it involve unwarranted risk taking and uncertainty (gharur). Options trading has a logic of its own, which is dominated by the idea of risk reduction and hedging against excessively large positions in its underlying assets. From the perspective of Islamic law this aspect of options is attractive and hence, from this perspective I make the case for the legality of options. I may also add here in passing that options trading cannot be equated with gambling or overindulgence in financial speculation. as it is basically designed to ...
format	article
author	Mohammad Hashim Kamali
author_facet	Mohammad Hashim Kamali
author_sort	Mohammad Hashim Kamali
title	ISLAMIC COMMERCIAL LAW
title_short	ISLAMIC COMMERCIAL LAW
title_full	ISLAMIC COMMERCIAL LAW
title_fullStr	ISLAMIC COMMERCIAL LAW
title_full_unstemmed	ISLAMIC COMMERCIAL LAW
title_sort	islamic commercial law
publisher	International Institute of Islamic Thought
publishDate	1997
url	https://doaj.org/article/eb598f0a2fbc45aeb2653756eeb6d622
work_keys_str_mv	AT mohammadhashimkamali islamiccommerciallaw
_version_	1718376237497319424

ISLAMIC COMMERCIAL LAW

Ejemplares similares