Pathology of the mechanism of trading in the Forex (foreign exchange) market and the feasibility of using its mechanisms in Iran.

Subject Areas : Financial engineering

mohammadhosein hajighiasi fard ^{1 *} , HASHEM NIKOOMARAM ²

1 - PHD Student of Finance, Faculty of Management and Economics, Sience and Research Branch, Islamic Azad University tehran, iran
2 - Islamic Azad University, Sience & Rasearch Branch.Tehran - Iran

Received: 2019-01-05 Accepted : 2019-02-27 Published : 2019-06-22

Keywords: Speculation, FOREX market, Currency rate, Marginal dealing, Rollover,

Abstract :

now wadays the subject of currency exchange rates plays an important role in international trade. Therefore, one of the major concerns of policymakers is to decide how exchange rates can be determined in an attempt to provide stability in the foreign exchange market of Iran for decreasing costs and risk of investment and making    security in economy. For achieving the goal, the identification of different sectors of FOREX can help policymakers in Iran's central bank to design an appropriate market and different instruments for controlling the currency market and making better security for businessmen in a real economy. Meanwhile, entering the marginal FOREX market in Iran and fraud activities cause reaction of regulator and Sharia's scholars who forbid this market without scientific research when marginal FOREX is only one part of the FOREX. Therefore, this research tried to recognize different parts of the FOREX market and to understand operational structure of this market especially the marginal market. Simultaneously, it studied this waste market in order to find and show advantages and disadvantages for policymakers and scholars. Also, this research tried to show jurisprudential assessment for finding Sharia's problems from Shia approach. Finally we understand that marginal FOREXjust developed speculative activities but researchers can focus on other market fields in order to design hedging instruments something like future and forward contracts. Also we understand that the marginal FOREX market has significant problems from sharia approach. This means that using and taking apart in this market is forbidden