"Islamic Finance Researches" (IFR)

"Murabahah" and "Musharakah" Contracts Designing New Model for Buying on Margin by Using

Document Type : Paper

Authors

1 Master of Islamic Education and Financial Management, Imam Sadegh University

2 Master of Islamic Education and Financial Management, Imam Sadiq University

Abstract

Nowadays, buying on margin is one of the most widely used instruments for different types of investors in the capital markets in the world. In Iran's stock exchange, this instrument has been launched from several years ago but there has not been any comprehensive approach so far that could cover its different shortcomings from jurisprudential and operational standpoints. In this article, after reviewing models and risks of buying on margin in different stock exchanges in the world, we have tried to explain a new model that is matched with imamiah jurisprudence. All solutions presented before that are based on "Qarz-e-Hasana" and "Juala" and "Musharakah" contracts. The reasons for the weaknesses of each of these solutions are presented in this paper.
This practical study has used an analytical descriptive method which tries to suggest different solutions for buying on margin in the Islamic exchanges based on "Musharakah" and "Murabaha" contracts. The presented model has overcome defects of other ones. Its risks and ways of covering those risks are also mentioned.

Keywords

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Volume 3, Issue 2 - Serial Number 6
May 2014
Pages 129-158
  • Receive Date: 22 November 2014
  • Accept Date: 16 June 2015