Ordinary forward sales are not allowed. The special exceptions already studied are Salam (سَلَم) and Istisna (استصناع), each with its own strict conditions.
Therefore, a commodity fund cannot simply use any future-delivery contract and call it Islamic. The contract must fit a recognized valid structure.
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Commodity Funds: Real Trade, Not Paper Commodity Exposure
Ordinary forward sales are not allowed. The special exceptions already studied are Salam (سَلَم) and Istisna (استصناع), each with its own strict conditions.
Therefore, a commodity fund cannot simply use any future-delivery contract and call it Islamic. The contract must fit a recognized valid structure.