Jurisprudence-legal feasibility of using futures contracts in the international currency market

Subject Areas : Journal of Law and Politics

Omid tavakolikia ¹ , Mohsen Aghasi ² , Syed AhmadAli Ali Hashemi ³

1 - Doctoral researcher of private law at Payam Noor University Graduate Center, "Tehran" - Researcher at Iran Law and Law Research Institute, Tehran, Iran
2 - Faculty member (trainer) of Payam Noor University, Tehran, Iran
3 - Faculty member (Assistant Professor) Payam Noor University, Tehran, Ira, Iran.

Received: 2023-01-29 Accepted : 2023-07-15 Published : 2023-06-16

Keywords: Futures contract, currency, Forex, currency market, Risk,

Abstract :

A futures contract is an agreement to simultaneously buy and sell a certain amount of one currency against another currency at a certain time and at a certain rate in the future. In fact, the futures contract is a type of forward contract, with the difference that the buyer and the seller are not known to each other and only transact with each other through banks or brokers active in the currency market. The foreign exchange market is a virtual market where interested people around the world can buy and sell existing currencies through the Internet and selecting the desired broker. The distinguishing feature of this market compared to other markets is the limited selection of investment options, and the major forex transactions are carried out only on seven currencies and three currency pairs, and by examining the macroeconomic variables of the countries and the news available at the international level, you can choose your desired currency. Islamic jurists believe that it is possible to trade the currencies of different countries in cash or at different rates because the inherent price and purchasing power of the currencies of different countries are independent and the general agreement is about the inaccuracy of using futures contracts and currency advances in the state of delaying obligations and rights. There are parties to some time in the future, which in this article has been examined in jurisprudential and legal doubts related to the authenticity of these contracts.