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Further, are there any structures for commodities to be hedged or for arbitrage purposes? and they are in compliance with Islamic principles.
Forward exchange contract is the most used method for hedging.
In case of exchanges, if the company is going to receive a large sum of foreign currency from customers it bears the risk that the currency will depreciate and the compan ... See More
Hedging is all about to minimise the risk,for example an oil export company knows that they will give delivery 200 barrel of crudeoil to India after 2 month and the price ... See More
Hedging is buying insurance for your position in your portfolio. It is taking the opposite position to safeguard and book your downside risk knowing that it doesn't ... See More
Forward Contracts and futures are the most common. They differ as forwards are non standardized and can can have a perfect hedge, while futures are standardized but have ... See More
Forward Exchange Contract is the common instrument