According to the futures contract the seller undertakes to sell a certain amount of a certain base asset in the future at a specific date at a certain price determined now, and the other party of the contract commits to buy that base asset with those specifications. In order to prevent any refuse, parties undertake to leave fund as a guarantee in the clearing house, moreover, they undertake to adjust the fund of guarantee in accordance with the future price changes, and the clearing house can give some of each part’s fund to another one in accordance with the changes, and that party is allowed to use it, but it has to be settled at the due date. 

The Nature of Transactions 

Futures transactions are commitment vs. commitment. In other words, the seller undertakes to sell a certain amount of a specific product in the future for a certain amount, and the buyer undertakes to buy it.

Guarantee fund (margin)

The guarantee fund with all its characteristics can be used in the futures contract as a condition while the contract is concluded.

Transferring the guarantee fund from one party to the other due to the changing of the base price, does not have an acceptable legal basis. In order to solve this problem, the following two solutions can be used;

1- According to the terms of the contract, the parties of have to put a certain fund as deposit in a broker and undertake to change the amount of the margin in accounting terms according to the future changes, but the margin of each of the parties will remain in his ownership until the transaction reaches the due date or one of the parties wants to withdraw from the transaction by handing over the transaction to the other party, in that case, in exchange for handing over the transaction (sale), he receives the final guarantee fund (which may be more or less than the initial guarantee fund) then withdraws from the contract. 

2- According to the contract, the broker is authorized to give a part of the guarantee fund of the parties to the other party in accordance with the future price change, and the party has permission to use it, but it has to be settled at the due date or the party withdraws from the transaction.

Asset Base

. The asset base in the futures contract can be all kinds of physical assets, currency, stocks and stock portfolios and all kinds of Islamic securities.

. In the stock portfolio futures contract, the portfolio must be ceded at maturity. It means that if the buyer intends to receive the base portfolio, the seller must have a power to cede it. This power can be verified by the opinion of market experts.

Article: The following conditions are correct in the futures contract of the stock portfolio;

1- Adjusting the stock portfolio on the assumption of corporate actions such as capital increase and profit distribution can be done according to the regulations of the Securities and Exchange Organization for the reference portfolio of that base portfolio.

2- The agreement of the parties to adjust the base portfolio on the assumption of a change in the reference portfolio is permissible.

3- The agreement of the parties on the futures contract and stock portfolio options on the assumption of the stoppage of the symbol of some stocks of the base portfolio, the cash settlement will be made in accordance with the regulations of the Securities and Exchange Organization.

4- The agreement of the parties on the futures contract and stock portfolio trading options (from the first day of the contract until maturity), if it is a decimal in the calculations of the base portfolio (for example, 257.6 shares), the cash settlement of the decimal amount at maturity as a condition while the contract is concluded, is valid.

Cash Settlement of the Contract:

Futures contracts can be settled in cash with the agreement of the parties.

Impossibility of Delivery of Assets at Maturity:

. If all or part of the financing bonds subject to the futures contract could not be delivered by the due date, with the agreement of the parties, it is permissible to deliver other bonds with certain adjustment coefficients by the due date. Also, the cash settlement of that part of the future contract is permissible based on the agreement of the parties.

. If it is not possible to deliver the asset with the specified specifications, the parties can agree while concluding the contract that another product of the same type, which is similar in terms of characteristics and price to the original product, will be the subject of the sales contract with a certain adjustment coefficient.

 Specific Futures Contract (Forward):

It is permissible to transfer a specific futures contract to others as an example of a sale contract.

Other Requirements:

In order to prevent futures transactions, it is necessary to include the following items in the regulations:

1- The possibility of delivering the asset base is permissible if the buyer is eager

2- A ceiling for the volume of transactions of the entire market shall be considered for each broker and each seller to prevent the formation of a crisis.

3- A solution to identify the futures seller and his credit level shall be considered.

. The agreement on the changeability of the price at maturity is not permissible due to ignorance of the price. It is also not permissible to link the transaction price to global prices.

Provision: If the price changes are disciplined and the minimum and maximum price are specified for it, for example, the range of price changes is determined by the fund (as a guarantee), it shows the ceiling of the person's default, the debt is removed and the transaction is correct.

According to the futures contract the seller undertakes to sell a certain amount of a certain base asset in the future at a specific date at a certain price determined now, and the other party of the contract commits to buy that base asset with those specifications. In order to prevent any refuse, parties undertake to leave fund as a guarantee in the clearing house, moreover, they undertake to adjust the fund of guarantee in accordance with the future price changes, and the clearing house can give some of each part’s fund to another one in accordance with the changes, and that party is allowed to use it, but it has to be settled at the due date. 

The Nature of Transactions 

Futures transactions are commitment vs. commitment. In other words, the seller undertakes to sell a certain amount of a specific product in the future for a certain amount, and the buyer undertakes to buy it.

Guarantee fund (margin)

The guarantee fund with all its characteristics can be used in the futures contract as a condition while the contract is concluded.

Transferring the guarantee fund from one party to the other due to the changing of the base price, does not have an acceptable legal basis. In order to solve this problem, the following two solutions can be used;

1-    According to the terms of the contract, the parties of have to put a certain fund as deposit in a broker and undertake to change the amount of the margin in accounting terms according to the future changes, but the margin of each of the parties will remain in his ownership until the transaction reaches the due date or one of the parties wants to withdraw from the transaction by handing over the transaction to the other party, in that case, in exchange for handing over the transaction (sale), he receives the final guarantee fund (which may be more or less than the initial guarantee fund) then withdraws from the contract. 

2-    According to the contract, the broker is authorized to give a part of the guarantee fund of the parties to the other party in accordance with the future price change, and the party has permission to use it, but it has to be settled at the due date or the party withdraws from the transaction.

Asset Base

. The asset base in the futures contract can be all kinds of physical assets, currency, stocks and stock portfolios and all kinds of Islamic securities.

. In the stock portfolio futures contract, the portfolio must be ceded at maturity. It means that if the buyer intends to receive the base portfolio, the seller must have a power to cede it. This power can be verified by the opinion of market experts.

Article: The following conditions are correct in the futures contract of the stock portfolio;

1- Adjusting the stock portfolio on the assumption of corporate actions such as capital increase and profit distribution can be done according to the regulations of the Securities and Exchange Organization for the reference portfolio of that base portfolio.

2-  The agreement of the parties to adjust the base portfolio on the assumption of a change in the reference portfolio is permissible.

3- The agreement of the parties on the futures contract and stock portfolio options on the assumption of the stoppage of the symbol of some stocks of the base portfolio, the cash settlement will be made in accordance with the regulations of the Securities and Exchange Organization.

4- The agreement of the parties on the futures contract and stock portfolio trading options (from the first day of the contract until maturity), if it is a decimal in the calculations of the base portfolio (for example, 257.6 shares), the cash settlement of the decimal amount at maturity as a condition while the contract is concluded, is valid.

Cash Settlement of the Contract:

Futures contracts can be settled in cash with the agreement of the parties.

Impossibility of Delivery of Assets at Maturity:

. If all or part of the financing bonds subject to the futures contract could not be delivered by the due date, with the agreement of the parties, it is permissible to deliver other bonds with certain adjustment coefficients by the due date. Also, the cash settlement of that part of the future contract is permissible based on the agreement of the parties.

. If it is not possible to deliver the asset with the specified specifications, the parties can agree while concluding the contract that another product of the same type, which is similar in terms of characteristics and price to the original product, will be the subject of the sales contract with a certain adjustment coefficient.

 Specific Futures Contract (Forward):

It is permissible to transfer a specific futures contract to others as an example of a sale contract.

Other Requirements:

In order to prevent futures transactions, it is necessary to include the following items in the regulations:

1- The possibility of delivering the asset base is permissible if the buyer is eager

2- A ceiling for the volume of transactions of the entire market shall be considered for each broker and each seller to prevent the formation of a crisis.

3- A solution to identify the futures seller and his credit level shall be considered.

. The agreement on the changeability of the price at maturity is not permissible due to ignorance of the price. It is also not permissible to link the transaction price to global prices.

Provision: If the price changes are disciplined and the minimum and maximum price are specified for it, for example, the range of price changes is determined by the fund (as a guarantee), it shows the ceiling of the person's default, the debt is removed and the transaction is correct.