Continuation
The
author notes that:
All
activities that contain elements of uncertainty are covered by the prohibition
of:
§ gharar
(uncertainty);
§ and
maysir (gambling)
stipulated
in the Quran.
These
activities includes also commercial transactions in which there is uncertainty
about an asset or its price.
According
to the author, generally, element of uncertainty can be found in almost all
commercial transactions.
Commercial
transactions with excessive gharar is prohibited.
For
example, excessive gharar can be identified in the case of insurance contracts.
Futures,
forwards and other derivatives also fall under gharar, as there is no certainty
that the object of the sale will exist at the time the trade has to be
executed.
From the research
paper of European Central Bank
(Authors:
F.Mauro, P.Caristi, S.Couderc, A.D.Maria,
L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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