Analyzing Speculative Transactions in Securities market based on Shariah principles

Speculation in securities market is an activity in which the trader with buying and selling securities in short horizon, intend to obtain the capital gain raised on price volatility. There are pros and cons for speculation. Some benefits of speculation include: increasing liquidity and efficiency in financial markets, decreasing price volatility, and increasing acceptance of risk. Along with the advantages mentioned, if speculative transactions extensively are developed in financial markets, such deals may cause to raise excess price volatility and speculative bubbles. In this research, at first by the method of library studies, dimensions of speculation include definition, types, effects, and … are studied. in the next step, sharia rules related to speculation have been extracted that include Gharar, Dharar, Tadlis, Akl al Mal Bil Batil, Ihtikar, and … and by the method of multi-level Ijtihad , these extracted sharia rules are analyzed and adapted with speculative transactions. It is noted in this research speculation is studies assuming no market abuse such as manipulation and inside trading.