Publication:
The concept of hedging in islamic financial transactions

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dc.citedby4
dc.contributor.affiliationsUniversiti Kebangsaan Malaysia (UKM)
dc.contributor.affiliationsUniversiti Sains Islam Malaysia (USIM)
dc.contributor.authorAhmad A.A.en_US
dc.contributor.authorHalim M.A.A.en_US
dc.date.accessioned2024-05-29T01:56:04Z
dc.date.available2024-05-29T01:56:04Z
dc.date.issued2014
dc.description.abstractHedging is a method to safeguard or minimize loss from risk that constantly exists in the financial market. Nevertheless, hedging in conventional perspectives involves the usage of derivative instruments which are controversy in Islamic view. Thus, the noble purpose of hedging that is to manage risk has been misunderstood as only to gain profit. The concept of hedging needs a further discussion because of its various interpretations on the meaning of hedging. Hence, the aim of this study is to discuss the general concept of hedging and subsequently the concept of hedging according to Islam. The approach used in this study of content analysis is the qualitative research method of document analysis. The researcher highlights the literature materials such as academic books relating to hedging including contemporary and classic fiqh scriptures. The study finds that the concept of hedging according to Islam is different from the conventional concept of hedging. This means, the study has developed a new theory of Islamic hedging. The theory of Islamic hedging must be based on the hadith of al-kharaj bi al-daman and fiqh maxim of al-ghunm bi al-ghurm approaches. In addition, the objective of Islamic hedging to reduce risk must only be related to real economic activities.
dc.description.natureFinalen_US
dc.identifier.doi10.5539/ass.v10n8p42
dc.identifier.epage49
dc.identifier.issn19112017
dc.identifier.issue8
dc.identifier.scopus2-s2.0-84897033341
dc.identifier.spage42
dc.identifier.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-84897033341&doi=10.5539%2fass.v10n8p42&partnerID=40&md5=803d732892dc3e1017e59ccf1fe88549
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/9791
dc.identifier.volume10
dc.languageEnglish
dc.language.isoen_USen_US
dc.publisherCanadian Center of Science and Educationen_US
dc.relation.ispartofAsian Social Science
dc.sourceScopus
dc.subjectHedgingen_US
dc.subjectRisk managementen_US
dc.subjectShariahen_US
dc.subjectSpeculationen_US
dc.titleThe concept of hedging in islamic financial transactionsen_US
dc.title.alternativeAsian Soc. Sci.en_US
dc.typeArticleen_US
dspace.entity.typePublication

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