Commodity exchange and stock exchange in [an] Islamic economy

We may reach a rough idea of Islamic alternatives to current practices in commodity, currency and corporate-stock trading if we evaluate them with reference to the Islamic economic framework. In general, spot trading and forward deals are halâl. Futures trading, however, is a different matter because futures are not commodities. Shari`a prohibits trade of non-entities. While speculation is not prohibited, within Islamic economies those investors who primarily speculate will not prosper. The exchange of actual commodities in Islamic deals aids the real sector. Foreign-exchange markets can level out and remain constant if the countries of the world work together. Information relevant to goods and corporations should be spread to lessen the effect of speculation on the market. In an Islamic market, there is no interest and thus earnings must come through efforts. Because every deal involves a delivery of goods, speculators again have less scope for action. Money is a medium of