Islamic Derivatives

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Islamic law requires that in a contract is about a proper object not per se a right to sell or buy (option). In a sale contract only delivery (Salam) or payment (Bay Muajjal) can be postponed but not both like with a future or forward.

Due to these various restrictions Islamic Derivatives are difficult to develop and controversely discussed. The restrictive view gain more prominence after the financial crisis.

See also: Profit Rate Swap, Tahawut, Arbun, Forex Swap