Now, if you get payment in three months and the rupee appreciates in value against USD, you will receive lesser than Rs 25, Learning the Basic Charting and Indicators. AIRASIA-X IPO Shares Out For MITI Im General conditions of sale and purchase :. How to Know if a Stock is a Good Buy.
The top most priority of an Islamic investor is to earn Halal income and avoid such sources of earning income and indulging in transactions which are prohibited in Islamic jslamic. Trading in foreign currencies offers a very good investment option for people who can analyze reasons and factors which lead to foreign exchange fluctuations. Trading in foreign currency is not just an investment option, but for some people, it maybe a necessary thing to do to protect themselves against losses arising from foreign exchange fluctuations.
Suppose you are living in Asia and you design T-shirts and export them to Perapective. Now, it maybe possible that you may not receive the payments at the time when you have dispatched the goods to your clients. Let us say, they agree to pay you in USD three months from now. But, in trading system stock market future forex timing kit cases, the payment is not received immediately.
Now, if you get payment in three months and the rupee appreciates in value against USD, you will receive lesser than Rs 25, Suppose the exchange rate fluctuates and now it is Rs 80 for 1 USD at the end of the third month when you are expecting the payment. Now suppose you are living in Asia and you design T-shirts and you import a special machine from Germany to process your garments. But, suppose you agreed to pay three months from now.
Now, if rupee depreciates in value against USD in tradjng months time, you will pay more than RsSuppose the exchange rate fluctuates and now it is Rs 85 for 1 USD at the end of the third month when you are paying for the machine. These examples show that sometimes it is worthwhile to have enough stock of foreign currency accumulated when it is cheap and then use it to pay for goods and services when it is more expensive.
Islam does not disallow one to plan for future contingencies. Hence, people can trade in different currencies on spot as both are considered different commodities. This however should be used only to hedge currency risk. However, forwards, futures, options, swaps and short selling in currencies should be avoided. To make them a tradable commodity only for earning a profit is also against the basic philosophy of Islamic economics.
In Pakistan, we see that the currency value is decreasing with respect to USD. But, it will help on the export side. Like Like Like Like Like Like My Question is: If the Currency of my nation is always depreciating, am I allowed in Islam to open a Domiciliary Account of the Currency that is always appreciating in value at the foreign exchange market?
Like Like Like Like Like Like In light of the information in izlamic article and in the response to the query by Mufti Taqi Usmani cited in the article, you may get some understanding on this matter. Like Like You are commenting using your WordPress. Notify me of new posts via email. Skip to content About. Perspetive on Islamic Economics.
Articles on Islamic Finance. General Issues About Islam. Islamic Finance Question Bank. Moral Directives for Income Sources. Moral Directives for Business. Moral Directives for Spending. Work of Researchers in Islamic Economics. Economic Data for OIC Countries. IEP on Social Media. Join IEP As Contributor. Share this: Tumblr Pinterest Reddit LinkedIn Twitter Facebook Print Email Google Like this: Like Loading About Salman Ahmed Shaikh.
PhD Scholar in Economics and works as GRA at UKM, Malaysia. He can be contacted at: teade siswa. This entry was posted in Articles on Islamic Finance and tagged Currency TradingDerivativesFinancial InstrumentsFinancial ManagementForex TradingFX MarketsHedgingInternational FinanceIslamic Finance. June 5, at am Imports become expensive with depreciation of currency. Oerspective 1, at am My Question is: If pwrspective Currency of my nation is always depreciating, am I allowed in Islam to open a Domiciliary Account of the Currency that is always appreciating in value at tading foreign exchange market?
August 1, at am Yes Mufutau, you can open a foreign currency current account. December 16, at pm I want to do forex trade for a means of earning and for long time. Can i do it? December 16, at pm Dear Muhammad Misbah. In light trade currency forex trading in islamic perspective the information in this article and in the response to the query by Mufti Taqi Usmani cited in the article, you may get some understanding on this matter.
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Forex Trading Basics: Forex Trading for Beginners - Part 1
forex islamic perspective helps international trade and assets by enabling currency large quantities of forex trading. Most foreign exchange traders. Is It Halal or Haram for Muslim to Trade Forex? The foreign exchange market (forex, of Iran also carries out Forex trading. Since Islamic rules are. forex trading in islamic perspective This is to and all other employees at CFG. forex trading in islamic perspective A year trade ; trainee foreign exchange.