Metal and agricultural commodity exchange transactions from the perspective of Islamic jurisprudence

Metal and agricultural commodity exchange transactions often take place under cover of forward contract. Because of the absence of perfect liquidity, time checks and Letters of Credit are used to pay the price of contract. Not paying the price in the forward contract will transform it into debt-to-debt buy and its nullity, successively. Besides it is not allowed to resell the purchased commodity under forward contract before its maturity; therefore the formation of secondary market is impossible.With reviewing different kinds of transactions in metal and agricultural commodity exchange and the respective problems, and examining and criticizing the proposed solutions, this article has utilized some principal Shiite-jurisprudence-based methods like: conveyance, forward and bailment contracts. In addition to jurisprudential validity, above-mentioned solutions solve the problem of transaction in secondary market, and prepare the ground for establishment of Islamic futures contract.