Many conventional commodity-futures transactions involve sale before ownership, repeated trading of contracts rather than goods, or lack of real possession. These features conflict with the sale rules described.
Therefore, an Islamic Commodity Fund cannot simply participate in conventional futures markets as they commonly operate.
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Commodity Funds: Real Trade, Not Paper Commodity Exposure
Many conventional commodity-futures transactions involve sale before ownership, repeated trading of contracts rather than goods, or lack of real possession. These features conflict with the sale rules described.
Therefore, an Islamic Commodity Fund cannot simply participate in conventional futures markets as they commonly operate.