FORWARD TRANSACTIONS IN ISLAMIC LAW PERSPECTIVE: AN ALTERNATIVE FINANCIAL TRANSACTION FOR SOCIETY
Journal Title: Educational Research International - Year 2017, Vol 6, Issue 4
Abstract
Forward is an agreement between two parties to buy or sell asset is no specific date and a specific price in the future. Assets can include forex, stocks, or foreign exchange. Meanwhile the Islamic law is used in the forms of Qiyas istimbath method, and study of the scholars and scientists fiqh, Islamic economics and conventional economics. Salam means the purchase of goods delivered at a later date, while the payment is made in advance. This research is classified as normative research. The study also called library research or literature research. This research includes as normative research on legal principles. In this study, the writer used analytical normative juridical approach. The type of approach used in this study is conceptual approach. In this study, the writer applied analysis of qualitative data as the method of data analysis. Results of this study show that forward transactions in currency containing interest rates and stock indices are not justified in Islam because it clearly involves an element of interest and high risk (gharar). There is also an opinion in Islamic perspective that states this type of contract significantly are not recommended under the law, but also clearly prohibited if it does not trade in commodities which are prohibited or not to use speculation and interest rates. The results show that salam transaction provides more benefits and welfare than forward transactions, in addition, in Islamic law, the force of law and halal transaction has been clear in Ijma 'ulama.
Authors and Affiliations
Fauzie Senoaji, Muhamad Nafik Hadi Ryandono
Keywords
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