456 replies to this topic

[Muzammil Akhund]

but if u have position in ready counter can u short sell/hedge it by shortselling in future counter.will that be islamic then

[Nomi929]

Muzammil Bhai check this link. It will help you in this matter.

http://www.kantakji.org/fiqh/Files/Finance...dge%20funds.htm

Muzammil Akhund, on Feb 28 2007, 11:39 PM, said:

but if u have position in ready counter can u short sell/hedge it by shortselling in future counter.will that be islamic then

[ovais]

future trading is not allowed in Islam, so that leaves no room shorting or difference settlement.......this is because you're doing a transaction at a future date and also deferring the payment till that date (unislamic because you're deferring the delivery and the payment)..... and then when you sell off the same share in the future you've sold off something which you did not own at the first insance, and then you've sold it at a future date and you have also deferred payment...... all these are key factors that make future trading unislamic......


now come the t+3 settlement...... (according to me) when i buy a share at the ready counter for delivery, although that share will come to my account after three days, but i am the legal owner of the share the moment the trade takes place... now that makes me the rightful owner of the share and i have the right to sell it off the same day.........
however, islam (my understanding is) does prohibit excessive speculation..... but i talked to a person who works at meezan bank and according to him the meezan bank has been instructed to caary out a trade only when the receive the delivery in the cdc otherwise it would make the transaction unislamic.........
however, i leave the room open for any discussion or anyone to disagree with me on this.

this is what i have understood with all the research i have conducted...... and ALLAH knows best.

[coolguy788]

mera bhai ek baat appp ki or batao agar app ready market mein buy karteee hou tou appp k a/c mein delivery 3 din baad aaaty hai or appp woh item 3 din baaad sell karogy yeah islam mein jaizzz hai

[Ahir]

coolguy788, on Mar 1 2007, 10:39 AM, said:

mera bhai ek baat appp ki or batao agar app ready market mein buy karteee hou tou appp k a/c mein delivery 3 din baad aaaty hai or appp woh item 3 din baaad sell karogy yeah islam mein jaizzz hai

much more Valueable information can also be found at

www.albalagh.net

[AbDuLmAtEeNkHaN]

One of Friend who is MasshAllah mufti have send me some material on stock market few days back ... main nay abhi parha nahi hay pura ..... kal topic dekha tu .. un sub papers ko scan kar kay ready kiya tha so just uploaded them hope kesi kay kaam ajay ga ....


http://www.4shared.com/file/11490688/6f29d...ell_in_KSE.html