Investigation of the Possibility of Using Derivative Contracts in Financial Markets from a Jurisprudential and Legal Point of View

Derivative contracts are essential for the prosperity of the stock market and the dynamism of the country's economy. Although the jurisprudential and legal concept and nature of these contracts in financial markets is a matter of debate, and in this paper, it is attempted to address this important issue.

The present paper is descriptive-analytical and the library method is used.

Ethical considerations: 

In this paper, the originality of the texts, honesty and trustworthiness have been observed.

The most important drawback of derivative contracts of option, futures contracts and forward contracts in financial markets is these transactions being aleatory or speculation. Uncertainty of the object of transaction and ignorance of its characteristics from a jurisprudential and legal point of view and also the high risk of the transaction question the legitimacy of the transactions and contracts. Because according to Iranian jurisprudence and law, it is necessary for the object of transaction to be transparent and clear, or at least for the general situation to be clear and specific.

It is possible to use derivative contracts in financial markets from a jurisprudential and legal point of view because risk and uncertainty cannot be separated from financial markets and economy. Derivatives contracts were created to control and reduce risk in financial markets and to bring transaction risk to a reasonably level that is accepted by custom. In this case, the mentioned transactions are not aleatory and are unrestricted from a jurisprudential and legal point of view.