Salam,
My understanding is that derivatives by their nature are not shariah compliant
point 3 of page 55 of the https://www.franklintempleton.co.uk/download/en-gb/common/h6fjq4nh/Franklin-Templeton-Shariah-Funds-Prospectus.pdf says “use Shariah-compliant financial derivative instruments for hedging purposes only”.
Not seeking screening or advice on investment but a general question if there is any such thing as “Shariah-compliant derivatives”
Regards
Zeeshan
Wasalam
May Allah bless you.
Yes there are some Islamic derivative instruments available in the market.
There is a short interesting book called Derivatives in Islamic Finance by Sherif Ayoub. Inside you will find a section about current derivatives used in the Islamic finance industry.
And Allah knows best!
Are from AUS brother
Salam
No brother I don’t live in Australia.
Esselamu aleykum,
Is there a halal gold derivative that has a leverage on it?
How can derivates be halal in the first place? When we buy, we have to buy a real thing right?
Esselamu alaykum,
I bought the book after seeing this. Which chapter is it? @Mufti_Billal @Mufti_Faraz_Adam