KembaraXtra – Islamic Derivatives: Cash Settlement in Futures Contracts (Detailed Explanation & Case Analysis)
KembaraXtra – Islamic Derivatives: Cash Settlement in Futures Contracts (Detailed Explanation & Case Analysis) 🔹 What is Cash Settlement? Cash settlement means: 👉 No physical delivery of goods 👉 Only...
KembaraXtra – Islamic Derivatives: What Happens If There Is No Margin in Futures Contracts (Case Example)
KembaraXtra – Islamic Derivatives: What Happens If There Is No Margin in Futures Contracts (Case Example) 🔹 Key Idea 👉 Margin exists to protect both parties 👉 Without margin → the system becomes very...
KembaraXtra – Islamic Derivatives: Risk & Shariah Comparison Between Futures and Options (Margin vs Premium)
KembaraXtra – Islamic Derivatives: Risk & Shariah Comparison Between Futures and Options (Margin vs Premium) 🔹 1. Risk Structure 🔸 Futures Contracts - Both buyer (long) and seller (short): - Have...
KembaraXtra – Islamic Derivatives: Does Margin Deposit Apply to Option Contracts?
KembaraXtra – Islamic Derivatives: Does Margin Deposit Apply to Option Contracts? 🔹 Short Answer 👉 Not in the same way as futures contracts. - In futures → both buyer and seller must deposit margin...
KembaraXtra – Islamic Derivatives: Long Position & Short Position (Simple
KembaraXtra – Islamic Derivatives: Long Position & Short Position (Simple Explanation) 🔹 What is a Long Position? 👉 A long position means you agree to buy an asset in the future. - You expect the price...
KembaraXtra – Islamic Derivatives: How Margin Protects Profits and Losses in Futures Contracts
KembaraXtra – Islamic Derivatives: How Margin Protects Profits and Losses in Futures Contracts 🔹 Key Idea 👉 Margin does not create profit 👉 It protects the system so profits and losses can be paid properly...
KembaraXtra – Islamic Derivatives: Margin Deposit in Futures vs Premium in Options
KembaraXtra – Islamic Derivatives: Margin Deposit in Futures vs Premium in Options 🔹 Why Do Both Parties Need to Put Margin? 👉 In a futures contract, both buyer and seller can lose money. - If price...
KembaraXtra – Islamic Derivatives: Shariah View on Conventional Options (Majority vs Minority Opinions)
KembaraXtra – Islamic Derivatives: Shariah View on Conventional Options (Majority vs Minority Opinions) 🔹 General Ruling 👉 Conventional options are generally NOT permitted in Shariah - This is the...
KembaraXtra – Islamic Derivatives: When Are Futures and Options Acceptable in Shariah?
KembaraXtra – Islamic Derivatives: When Are Futures and Options Acceptable in Shariah? 🔹 Key Principle First 👉 In Islamic finance, contracts are acceptable only when they: - ✔ Involve real assets or...
KembaraXtra – Islamic Derivatives: Examples of Real Economic Activity Linked to Financial Assets
KembaraXtra – Islamic Derivatives: Examples of Real Economic Activity Linked to Financial Assets 🔹 Key Idea 👉 A financial asset is acceptable (in Shariah) when it is linked to: - Real goods - Services...