Abstract
The application of derivative instruments have been broadly expanded. As a hedging instrument, it is now becomes so far as an investment instrument that traded in the market in massive volume. Major of Islamic scholars have found them to be objectionable based on the juridical nature of contractual arrangements. This paper explains the expanding function of contemporary derivatives and reviews the scholars legal point of view. This paper also defines the basic norms of Islamic financial ethics as the guidance for developing Islamic financial instrument. In the last section of this paper examines alternative for Islamic hedging based on salam and al-khiyar principles, which completed by syariah insurance.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
