Rabu, 02 Juli 2008

Practicing in the Forex Market

So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.

To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the ‘game’, you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.

You will open an online ‘account’ using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make ‘fake’ trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.

The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets.

FOREX, trading foreign currency

FOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.

What makes the FOREX market different from the stock market?A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.

What really makes up the FOREX markets?The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.

You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!

The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number.

Forex trading, where do customers go?

Forex trading uses currency and stock markets from a variety of countries to create a trading market where millions and millions are traded and exchanged daily. This market is similar to the stock market, as people buy and sell, but the market and the over all results are much much larger. Those involved in the forex trading markets include the Deutsche bank, UBS, Citigroup, and others such as HSBC, Braclays, Merrill Lynch, JP Morgan Chase, and still others such as Goldman Sachs, ABN Amro, Morgan Stanley, and so on.

To get involved in the forex trading markets, contacting any of these large broker assistance firms is going to be in your best interest. Sure, anyone can get involved in the forex market, but it does take time to learn about what is hot, what is not, and just where you should place your money at this time.

International banks are the markets biggest users on the forex markets, as they have millions of dollars to invest daily, to earn interest and this is just one method of how banks make money on the money you save in their bank. Think about the bank that you deal with all the time. Do you know if you can go there, and obtain money from ‘another’ country if you are heading out on vacation? If not, that bank is most likely not involved in forex trading. If you have to know if your bank is involved in forex trading, you can ask any manager or you can look at the financial information sheets that banks are to report to the public on a quarterly baiss.

If you are new to the forex market, it is important to realize there is no one person or one bank that controls all the trades that occur in the forex markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most often traded in the forex markets include those of the US dollar, the Eurozone euro, the Japanese yen, the British pound sterling and the Swiss franc as well as the Australian dollar. These are just a few of the currencies that are traded on the forex markets, with many other counties currencies to be included as well. The main trading centers for the forex trading markets are located in Tokyo, New York and in London but with other smaller trading centers located thought out the world as well.

Forex trading, what the hype is all about

Forex trading is all about making big money. Some investors have found it quite easy to make a large amount of money as the forex market changes daily. Forex, is the foreign exchange market. Online and offline you will find references to the forex market as FX as well. Forex trading takes place through a broker or a financial institution often where you are able to purchase other types of stocks, bonds and investments.

When you are thinking about getting involved in the forex markets you should know you are sending money to be invested with other countries. This is done to prop up the investments of people involved in certain types of hedge funds, and in the markets overseas. The forex market could have your money invested in one market one day, and the next day your money is invested in another country. The daily changes are determined by your broker or financial institution. When reading your statements and learning more about your account, you will find that every type of currency has three letters that will represent that currency.

For example, the United States dollars is USD, the Japanese yen is JPY, and the British pound sterling will read as GBP. You will also find that for every transaction on your account listing you will see information that looks like this: JPYzzz/GBPzzz. This means that you took your Japanese yen money and invested it into something in the British pound market. You will find many transactions from one currency to another if you have money that is scattered through out the forex markets.

Forex markets trading by investment management firms are the companies you can trust with your money. You want to find a company that has been dealing with forex trading since the early seventies, and not someone just new on the block so you get the most for your hard earned money. It is important that you beware of companies that are popping up online, and often times from foreign countries that are stating they can get you involved in the forex markets and trading. Read the fine print, and know whom you are dealing with for the best possible protection.

If you are interested in trading on the forex market, you will find limits for investing are different from company to company. Often times you will learn that you need a minimum of $250 or $500 while other companies will need $1000 or $10,000. The company you are dealing with will set limits in how much you need to open an account with their company. The scams that are online will tell you, that you only need a $1 or $5 to open an account, but you need to learn more about that company and where they are doing business before investing any money, this is for your own protection while dealing in forex trading and markets online.

Forex Trading – should you invest?

Forex trading is all about putting your money into other currencies, so you can gain the interest for the night, for time period or the difference in trading money all around. Forex trading does involve other assets along with money, but because you are investing in other countries and in other businesses that are dealing in other currencies the basis for the money you make or lose will be based on the trading of money.

Constant trading is done in the forex markets as time zones will vary and the markets will open in one country while another is near closing. What happens in one market will have an effect on the other countries forex markets, but it is not always bad or good, sometimes the margins of trading are near each other.

A forex market will be present when two countries are involved in trading, and when money is traded for goods, services or a combination of these things. Currency is the money that trades hands, from one to another. Often times, a bank is going to be the source of forex trading, as millions of dollars are traded daily. There is nearly two trillion dollars traded daily on the forex market. Should you get involved in forex trading? If you are already involved in the stock market, you have some idea of what forex trading really is all about.

The stock market involves buying shares of a company, and you watch how that company does, waiting for a bigger return. In the forex markets, you are purchasing items or products, or goods, and you are paying money for them. As you do this, you are gaining or losing as the currency exchange differs daily from country to country. To better prepare you for the forex markets you can learn about trading and purchasing online using free ‘game’ like software.

You will log on and create an account. Entering information about what you are interested in and what you want to do. The ‘game’ will allow you to make purchases and trades, involving different currencies, so you can then see first hand what a gain or loss will be like. As you continue on with this fake account you will see first hand how to make decisions based on what you know, which means you will have to read about the market changes or you will have to take a brokers information at value and play from there.

If you, as an individual want to be involved in forex trading, you must get involved through broker, or a financial institution. Individuals are also known as spectators, even if you are investing money because the amount of money you are investing is minimal compared to the millions of dollars that are invested by governments and by banks at any given time. This does not mean you can’t get involved. Your broker or investment advisor will be able to tell you more about how you can be involved in forex trading. In the US, there are many regulations and laws in regards to who can handle forex trading for US citizens so if you are searching the internet for a broker, be sure you read the print, and the information about where the company is located and if it is legal for you to do business with that company.

Forex markets – trading internationally

Forex market trading is trading money, currencies worldwide. Most all countries around the world are involved in the forex trading market, where money is bought and sold, based on the value of that currency at the time. As some currencies are not worth much, it is not going to be traded heavily, as the currency is worth more, additional brokers and bankers are going to choose to invest in that market at that time.

Forex trading does take place daily, where almost two trillion dollars are moved every day – that is a huge amount of money. Think about how many millions it does take to bring about a total of a trillion and then consider that this is done on a daily basis – if you want to get involved in where the money is, forex trading is one ‘setting’ where money is exchanging hands daily.

The currencies that are traded on the forex markets are going to be those from every country around the world. Every currency has it own three-letter symbol that will represent that country and the currency that is being traded. For example, the Japanese yen is the JPY and the United Stated dollar is USD. The British pound is the GBP and the Euro is the EUR. You can trade within many currencies in one day, or you can trade to a different currency every day. Most all trades through a broker, or those any company are going to require some type of fee so you want to be sure about the trade you are making before making too many trades which are going to involve many fees.

Trades between markets and countries are going to happen every day. Some of the most heavily trades occur between the Euro and the US dollar, and then the US dollar and the Japanese yen, and then of the other most often seen trades is between the British pound and the US dollar. The trades happen all day, all night, and thought out various markets. As one country opens trading for the day another is closing. The time zones across the world affect how the trading takes place and when the markets are open.

When you are making a transaction from one market to another, involving one currency to another you will notice the symbols are used to explain the transactions. All transactions are going to look something like this EURzzz/USDzzz the zzz is to represent the percentages of trading for the percentage of the transaction. Other instances could look like this AUSzzz/USD and so on. When reading and reviewing your forex statements and online information you will understand it all much better if you are to remember these symbols of the currencies that are involved.

FOREX (Foreign Exchange Market)

The foreign exchange market is also known as FX or it is also found to be referred to as the FOREX. All three of these have the same meaning, which is the trade of trading between different companies, banks, businesses, and governments that are located in different countries. The financial market is one that is always changing leaving transactions required to be completed through brokers, and banks. Many scams have been emerging in the FOREX business, as foreign companies and people are setting up online to take advantage of people who don’t realize that foreign trade must take place through a broker or a company with direct participation involved in foreign exchanges.

Cash, stocks, and currency is traded through the foreign exchange markets. The FOREX market will be present and exist when one currency is traded for another. Think about a trip you may take to a foreign country. Where are you going to be able to ‘trade your money’ for the value of the money that is in that other country? This is FOREX trading basis, and it is not available in all banks, and it is not available in all financial centers. FOREX is a specialized trading circumstance.

Small business and individuals often times looking to make big money, are the victims of scams when it comes to learning about FOREX and the foreign trade markets. As FOREX is seen as how to make a quick buck or two, people don’t question their participation in such an event, but if you are not investing money through a broker in the FOREX market, you could easily end up losing everything that you have invested in the transaction.

Scams to be wary of
A FOREX scam is one that involves trading but will turn out to be a fraud; you have no chance of getting your money back once you have invested it. If you were to invest money with a company stating they are involved in FOREX trading you want read closely to learn if they are permitted to do business in your country. Many companies are not permitted in the FOREX market, as they have defrauded investors before.

In the last five years, with the help of the Internet, FOREX trading and the awareness of FOREX trading has become all the rage. Banks are the number one source for FOREX trading to take place, where a trained and licensed broker is going to complete transactions and requirements you set forth. Commissions are paid on the transaction and this is the usual.

Another type of scam that is prevalent in the FOREX markets is software that will aid you in making trades, in learning about the foreign markets and in practicing so you can prepare yourself for following and making trades. You want to be able to rely on a program or software that is really going to make a difference. Consult with your financial broker or your bank to learn more about FOREX trading, the FX markets and how you can avoid being the victim while investing in these markets.

Foreign exchange market is different from the stock market

The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970’s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.

The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.

Rabu, 25 Juni 2008

THE SECRET LIFE OF THE WRITER

by Wera Sæther

Where, how and in whose life is this secret hiding?
I do not know the meaning, or intention, of the title that I - and others - have been invited into. My not-knowing refers to the individual words of the title and to the phrase as a whole. My eyes, then, are of suspicion. What kind of clothes are these, and what kind of emperor is taking my innocence for granted?
My unknowing - of suspicion and questions - is may be somewhat dry. There´s a time for harsh doubt, and another time for the wanderer who rejoices in what she´s finding, and finding, and finding again, in the wilderness and the dark.
After a minor ordeal of questions, I´ll move on to a more childlike, immediate and maybe ”juicy” place. After having been - in the context of this text - on the road with my camera for a while, I´ll invite you into my darkroom. No other place is secret in quite the same way. It´s exhausting always, and seminal sometimes. And it´s, of course, not what the editor of a literary magazine expects to be named as ´the secret life of a writer´.
This darkroom, my darkroom is a real darkroom, the one for b&w photographs. It´s not a metaphor for a special phase in the process of literary writing. But it does have effects that may be literary sometimes.
I keep a piece of writing paper near the tray for chemicals.
What is it that one knower knows, and not another;
how does it happen; and who can know it really does happen?
When you really know, you don´t even know that you do;
it is it that knows you.
1
A minor massacre of a title
The Threshold, or: What is a Secret?
In my mother tongue Norwegian, the noun for secret is immense, the adjective a little bit less so. You enter the secret and remain within it. After you´ve left it, it remains within you. It´s so much bigger than you, it´s a house. It may be a shelter and it may be exposure to shaking truth. Shelter and nakedness, both.
This noun is hemmelighet. It feels, to me at least, so much more secret than the English secret.
Hemmelighet may be, first of all, a word for children. Children keep and share secrets. That´s what early bonds are made from. Those same bonds are exposed to the possibility of betrayal. Betrayal is exactly this, betrayal of secret(s). This is so for the child. Some say it´s the case for nations as well. A spy betrays his/her nation´s secret. The Norwegian Quislings did so during WW2.
When a spouse betrays his/her partner, it´s mostly for another intimacy. The body then is the secret ”taken” from the other spouse and given to a stranger. Sex and secret are intertwined on more levels than one.
The title of this essay - that I´m obeying - was not invented by me. It could not have been so. It really is complex, difficult and intriguing. It may be misleading, too. It could tempt an essayist to take for granted what this writer/essayist certainly cannot take for granted. Before entering a house of possible secrets, I´m standing at the threshold of the title with questions, wide-open.
I approach the title, word by word, using my associative mind and some handbooks. My German etymology book tells us that Geheimnis, German for secret, belongs to the home. (Heim means home) My Latin book tell us that secretum means separate. The secret is somewhere else, or elsewhere.
The home, of course, is another place as compared with all other places, and the universe. It´s the place inhabited by very few, who eat and sleep there. There is a line and a limit, an inside and an outside. The associations are spatial.
Secret is also a political term. Some very few people are within the tower of political secrets, most are outside. Very few know the nuclear secrets. Those who know have the ultimate power. Should they practice it even more totally than they do now, by intimidating us and holding us all as hostages, we, the uninitiated, would have no secrets and no life any more. Neither would those who now have the ultimate power.
Seen from quite another - and very quiet - angle, the secret belongs to those few who have been desiring Truth and, in some specific ways, renouncing the world painfully and patiently for years, not without joy with no limits, on the path to (esoteric) wisdom that empowers, endlessly so, from within.
In the free-floating mood and mindset of our times, in this openly brutalised society, with much less borders than before, with much darker darkness and much less decency as well, a search for the secret, is intriguing. Our capitalist culture is at its very core perversively tolerant.
Is there an elsewhere still? Does anything at all exist which is not, as a matter of principle, open to all and at all times?
In other cultures, what is secret has always been and still is close to the blood. Men shared blood and were initiated into each others´ secret, or into being (part of) the same secret. Only males did this.
In 1992, I lived for some weeks in an extended family with two HIV-infected members in Kigali in Rwanda. My Rwandan family told me about the secrets of the Rwandans. Only within the enclosure would secrets be spoken.
The traditional King´s might was based upon his knowledge of the royal secret, known only by him, the King, and one other witness. Should the King die, this witness would pass the secret on to the next King. The secret knowledge constituted the very power of the King. The colonizers, of course, despised such a tradition and repressed the old ways of the royal court and the people. As we all know, the people later on killed their own neighbours. Those who were systematically killed in 1994, the Tutsi, were those who used to own the oldest secrets.
It was no secret to anybody in 1994 who were Tutsi at the hour of the genocidal killings.
Secret life
What is described as secret by the title of this essay, is ”(part of ) the life of the writer”. It could also have been her dying, or death(s). The writer´s death(s) may have more to do with her creation of literary texts than her life.
How biological is this life that is wanted? Life is (in the) body. It is where the organism breathes and can bleed. The life of the body, or the body, tout court, cannot be written. The body can be conceived, born, it can make love, be in pain, be reduced by diseases and die.
Is it this very same organism that also writes, or is it another? Is the writer´s life, secret or not, in the body, in the text - or elsewhere?
In unknown and quite mysterious ways, the very same body that has been conceived and can conceive, and that will certainly die in a non-metaphorical way one day, can also produce literary texts. Same eyes, same hands. It is also true to say that it is another body that writes the texts.
It is by the same body, or by an undefinable space of desire and freedom within this ordinary body, that the writer writes.
This may be a metaphysical perspective. It certainly is mine.
Secret, to whom?
A secret is not simply unknown or unconscious. A secret can be known, hidden and revealed. How is another issue. Somebody knows the secret, fully or partly. Can one person´s knowledge constitute a secret? Can a secret really be between less than two? I may not know who else knows the secret. This very unknowing may belong to the very category of a certain secret, at least in the universe of religious or other initiation rituals.
I will reveal parts of my own ”secret life of the writer” as I stumble on in this text. So far, I´m only exploring a certain topography of secrets and lives. To whom is ”the secret life of the writer” secret, or a secret? To the writer herself? But can there be another to know this secret if the writer does not? Does the text know it?
Is it the literary critic who knows the secret (life) of the writer?
How many lives can one writer have?
The writer is in the process of making/writing/producing her text. There, and there only, is her privileged place. Is she, though in thinner air, so to speak, also outside of the privileged intensity, pain included, of being the person who writes?
Am I a writer also when I speak, sleep or make love, i.e. when I have no intention at all to make sentences, chapters or the silences within those sentences and chapters? Is a writer eo ipso always a writer? I´m not now trying to distinguish between those who are and those who are not writers. I simply try to see as I stumble and tremble if the writer always wears the clothes, or/and the nakedness, of a writer.
I am not the child shouting that she knows when the writer is a writer. I am only whispering that I do not know. Is there another space, a non-writer´s space within the writer. Does this depend upon how this particular writer is a writer.
I only write about the writer whose ultimate act is writing. But, then, who can know? Does the writer know? Self-conceit is almost omnipresent always.
I assume a certain topography of existence is taken for granted by the title of this essay. A writer is a writer sometimes, and something else at other times. He, the inventor of the title, may even have had fantasies about the energy and drama of the illicit and secret in the writer´s emotional or (private) daily life.
To repeat the question: Is there another than the writer in the writer? There is the other of the text. But the text is not in the writer. The text is crossing the threshold.
2
The text
The text as secret life
The writer, in the context of my text, writes literary texts that can be read by others. They may not be written in order to be read. But they are not written and then burnt. I do not, however, mean to say that a person who burns what (s)he has written could not be named a writer.
A text or a book is a public object. It belongs to anybody. It may be said to belong to itself. It certainly does not belong to its author anymore. There should be no narcissism, as the text is another. Of course there is narcissism, as attachment is an emotional fact almost always and detachment is a long, long road.
Still, the text belongs to everybody and to literature.
My use of the concepts of secret and of life is long since blurred. If the text is the secret life of its author, then life is no biological concept any more and there is no knower of the secret, as the text is not (fully) known by its author. For that very reason, I limit myself to introducing this perspective. There is no bigger and more secret secret in the life of the writer than the text that does not belong to her and that transcends her. The text is within, in the wind of the spirit, and without, in the universe of mirroring, abuses and negligence. There is no protected space for this secret. It is exposed to jackals and to silence.
To speak with Bengali mystics ”its address is in the wind”.
Examples
Most of the time I do not write. But I write always. ”My address” is in writing. I have no outside when I write. I have no other life in that second. It´s full and ”one” - like meditation. It´s meditative work. For a while I forget the rest. I am just that. I rewrite and rewrite. I may be humming. But I do not think. I have been thinking before and I will think again as I read what I´ve been writing.
Writing is another exposure (to the unexpeced and uncontrolled) than thinking. The thinker has clothes on, the writer has none, or just a few. The road of writing is steeper than the road of thinking. There are surprises.
Twice in my quite recent experience of writing there´s been major surprises within the process of writing - that always implies many small surprises.
Summer 1997: I was working on a novel to be called ”Son of Dust”. I had a privileged month of enjoying ”a writing retreat”, in Umbria, Italy. Going there, I carried the characters of the novel inside of me. The novel´s story had long since been thought out: An old widower Anton is obsessed by a plane crash that happened in the woods - in the real world - not far away from his home when he had just become a father. The plane carried 28 Jewish children who had been selected to come to Norway to eat and to play in 1949. One child, Isaac, survived the crash. (This is quite important Norwegian post-war history, probably connected to the special relationship between the State of Israel and Labour Party post- WW2 Norway.)
My character, Anton, plans to go and find the metallic remains of the plane fifty years after the plane crashed. At the very beginning of Anton´s secret plan and path, the character Rosa happens in the author´s mind and in the story, like the explosion of secret energy and more. Rosa and her secret(s) had been no secret to anyone before. ”She” did not exist before bursting out from an unknown place in the author. She then became the juice of the story, the burning point, so to speak. The very axis.
It belongs to the story of the literary creation that the author then ran into the sunflower meadows of Umbria in utter bewilderment. All of a sudden, her story had become another.
From which territory of the author´s secret life did the character Rosa burst forth?
Fall 2000: I was working on a children´s novel. It had long since been thought out, with its main characters and structure of events. The details, history and energy of the secret (a photograph) that a child would be carrying from Kolkata (Calcutta) to Varanasi (Banaras) by train had been in the imagination of the author for a while.
The protagonist, Sara, eleven year old, is travelling by Himgiri Express on her own. But, of course, never alone, as this is India. She is travelling to find ”the smallest child”, shown on the photograph, and who may be an unknown brother. She carries her secret quietly and shares the ordinary, funny and dramatic moments of the train journey with the others in the compartment.
All of a sudden, Sara hears a strong but quiet song in the omnipresent noise of the train. It´s a blind woman singing in order to beg. The blind woman is accompanied by a girl child who is her daughter. Sara is totally surprised and absorbed by the presence and face of this girl who has her own age. In the author´s draft of the novel, Sara´s ”twin” did not exist. The barefoot girl´s name is Uma.
The character Uma then changed the rhythm and the rasa, as Indians would call it, of the novel as such.
Rasa means juice, mood, colour and all. Rasa is what Indian art is all about.
The event of Uma was more than liberating. I, the author, was not only my own controlling mind any more. It was as if I had been found by another. I then became Sara from another angle. I became Uma and her blind mother. I was this interwovenness and the energy and the joy of it.
This is joy complete. When ”it” happens, it transforms the text. It makes the bond between author-and-text even more intimate and mysterious. It is deeply spiritual. It cannot be ordered but happens in its own time.
What connection does this have to secret life. Maybe none. The reader of my novels will most probably not feel or know in other ways that Rosa or Uma came to happen in other ways than the other characters. But they carry, for their author, another secret.
It is easy for me to distinguish between the parts of a story that happen in the ”ordinary” way and those that happen extraordinarily. Rosa, Uma and the other surprises belong to another level of secret, initiation or freedom. The experience/event could be translated like this: there is more, another ”ocean”, within ”me” than I used to know.
3
Towards the dark
Self-presentation/biography
I live near the woods and the sea, in a country where people used to be poor and modest, at the end, or the edge, of the continent of Europe. Beyond us, the ocean and the Arctic.
I live and write in a time when souls sell themselves with little shyness on a marketplace that knows no limit. In me, there used to be a simple joy at belonging to this place called Norway and this particular history of resistance.
But the resistance to power is long gone. The woods still are there. The part of nature in our, the Norwegians´, collective soul is vibrant still. But a new Norwegian self-image, mirrored by money, has exploded. It´s vulgar and makes me think of post-nuclear explosion mentality in India. The Indian elite was overtly enthusiastic at their sudden visible ”might” (to destroy).
I´m a post WW2 child born to parents who fled from Gestapo to be rescued by ”neutral” Sweden. My family soon came back to Norway and I grew up as a child in the shadow of an immense cement factory. It marked my senses and my political and cognitive perspectives as well. Any huge factory anywhere in the world sends my senses straight back to childhood. The smoke and the dust are accessible within me always.
The plane crash of the above-mentioned novel happened in ”my” woods. I was 4 years old then. The crash was on everybody´s lips and it happened in my mind and emotions: children who came to our land to eat had suddenly died. They had become ours by having been chosen to come to us and they became even more ours by their sudden death.
A stranger was rare back then. A plane was quite rare as well.
Nothing carried secrets like strangers did. And I was always waiting.
Self-presentation/art
The dark I´m inviting my reader into is the dark of the darkroom. I go there with my sorrows sometimes. I´m then enveloped by a quiet darkness with no intruder. It´s like having an extra layer of skin. But it´s also being more naked. I mostly go there to make prints.
By now I´ve left suspicion and the dissection of the title behind. I´m on my way inwards and am becoming more simple. The territory I´m on is mine, but it´s also unknown. I´m inviting you into my home. Remember home, Heimat in German and hjem in Norwegian has an etymological connection to HEMMELIGHET that means secret.
My first book, published in 1973, was a collection of poetry. My last collection of poetry was out in 1989. Since then very few poems have been written by me. At the time of the last one, I had taken up photography. It was modest and unambitious. I was playing with silver, light, time and faces. I had been seduced into it by friends and had no technical fascination at all. I remember resisting the camera as an object. I also resisted the darkroom as a technical arrangement and a special kind of knowledge. But the silence and the secret of the darkroom soon became a strong attraction.
Photography for me had to do with the surreal, the strange constellations and contradictions that can be contained within one frame, from the very beginning. It had and has to do with catching the invisible by being fully there.
Presence of being is the method.
What is it that I want to touch with my eye? The invisible. Or, the structure and mood of the invisible in the invisible.
Writing has to do with catching and holding the unheard (of).
I´m waiting for the poetry of poems to come back. It may never fully happen. The poet has sought shelter in the continous time of novels. The rasa may be the same, but not the genre. Different forms of art have different inherent modalities of time.
The photograph, this creature that is caught in a 1/60 second or less, belongs to another dimension of time than the novel. It´s much closer to the poem. Its raw material, which is light and silver, is presence as well.
I´m mostly out there, faway from my woods, when it happens, often in what is sometimes called ”the global South”. I´m far away from my ordinary home in that other home of movement, wind – and other people´s hospitality. The readers of my books know little about this. Is it my secret life?
If it is, my secret life does not unfold itself within my home, but on the road. And later on, of course, in the darkroom.
With whom do I share it?
The readers of my books do know that I´m sometimes travelling far, as I write travel books and documentaries also. But they cannot know how it feels. And they do not know the dangers, play, patience and rare ecstatic joy of catching ”it” by my Leica.
I never know in that split second if I´ve caught it. I cannot see it happening on the silver of the film. It´s hidden. Sometimes I wait, trembling, to see.
Having rescued my films from possible thieves and my own negligence as I travel, I´m always nervous after my arrival back to Norway:
Is ”it” there or did I miss it or damage it as I wandered?
The photograph as secret
Words are omnipresent, images as well. There´s almost nowhere to hide from them. But when I put my Leica to my eye, what is there, in front of me, has never been seen, not by me, not by anyone else, before. It´s new. It´s as if I´m being seen by the unseen in that split second. I´m porous almost. I am not the old ”I”, controlled, controlling and controllable. I´m out there, in there, wider. When it fully and really happens, then it´s nothing but self-forgetting joy.
Joy is where ”I” is not any more. Or, maybe, ”I” is, but for a split second – which may remain with me for a long time – it´s so much wider.
I do not forget about the light, or the structure of forms, or the focusing. The disciplined thought processes do stay on. Still, I am at the receiving end. Though it´s hard, sometimes harsh, work to do photography, it´s first of all a gift of time. I receive time. Is it another time, or the same time as ordinary time?
And is it because time was the raw material of my mind´s doubt and groping when I was sixteen and my father died very slowly that I was to be, much later on, seduced by the work and the effects of the camera, I who have no technical fascination whatsoever? I have been absorbed by the question of time since my conscious mind´s beginning.
I have had to swallow more technical camels than one. They have been huge and difficult to endure. The connections to explore as long as I live are: photography and time, photography and death, photography and grace.
There´s nothing more secret than a photograph. It cannot be spoken. I, who was there and did the complex act of choosing frame, angle, shutter-speed, focussing, in addition to having already chosen the time and place in history, geography and more, do not know fully what I do. I have chosen. But I cannot know what. I know that most (male?) photographers want to control it all. I am not with them. I may be a child. I do what I do - technically - as best I can. But I do not know what I do. I cannot grasp the constellation of light, silver, my Leica with my mood and my mind. I know that what I do is not all there is. I am at the receiving end - and often trembling. It´s not because of any immediate danger. I do not choose wars. People´s ordinary life on the edge is a drama in itself.
With my Leica, I am at the edge too. I´m exposed. Or, more truly, I´m - via my eye - mingling with what I see. There is no distance.
A Sheep and a Romanian Girl
In January 1991, during the war in the Gulf, my mother died in my home. Before dying she wanted to be photographed. She danced to East European Jewish klezmer music and I photographed her then. After she died, I decided to have her bedroom changed into a darkroom.
Two months later I travelled for a month in Romania with two dear writer friends, Ana Blandiana and Romulus Rusan. We spent Easter in a village in Maramures, near the border to the Ukraine. I was invited into another time, old and undamaged by the Ceaucescu regime, as the region was quite far away from the capital of Bucuresti and the frenzy of crazy dictatorship. I was photographing the Easter rituals. The result became a certain documentation but not much more than that.
We then left the village and I do remember a market place. Yes, I remember a man and a woman, a couple, selling sheep. They wanted to be photographed and even suggested to pay me for it. A very funny picture was the result, a proud village couple with their pride, in addition to the animals, exposed.
What I do not remember at all is much more important. My negative is a proof. My memory is nothing.
Once back in Oslo I studied my contact prints. There was one negative different from the others. This one negative is esthetically, maybe even metaphysically, different from the rest. That particular photograph, a quotation from time and beyond-time, is with me like an extra fragment of heart still.
There´s a sheep. Yes, the sheep is in focus, and there´s a slightly blurred young girl, maybe eleven, twelve, or even fourteen. The sheep looks like it´s seeing the photographer, the girl does not. Her gaze is secretive. Her clothes tell us about Maramures. Because of her clothes and the presence of the sheep, I may know the photograph was ”caught” there, at that Saturday market in a town in Maramures, and not somewhere else. I remember nothing. I have not seen the girl and the sheep. My memory is never perfect. But this memory blankness is different.
I assume I saw the sheep and the girl differently from how I saw the rest. My camera saw them, or what my Indian friends would say, my third eye. This photograph is a secret, in the sense of ungraspable, to the photographer herself. Nothing is closer to her than it is.
There is another moment, or morning in March 2000, that I remember well. All that is in me remembers it. I did not ”catch” it. I laid down my camera that morning, in a village in Birbhum in Bengal. I had spent the night with a family there. The eleven year old daughter took my hand. She and I walked in the village. We met a woman, the girl´s cousin. The woman said: come with me. So we did, Uma, the eleven year old, and I. The woman took us to a hut. It was hers. The children of the village gathered there. Some entered the hut with us, others stood watching and waiting. All of a sudden I understood what it all was about. An egg. The woman had found or bought or borrowed an egg. It was all for me. There was no other egg. She boiled it and found me some salt. She gave the egg to me to eat. I ate it in front of all those who watched. I was the guest, the sudden ”god” who had appeared on their ground.
An egg will never be the same any more. This is my ”secret life”. Is it of the writer?
The darkroom: intimate and unknown
My home has five ”foci”: the kitchen table, the fireplace, the bed, the Macintosh – and the darkroom. The darkroom is where the flat´s bedroom used to be. No doubt, this room – architecturally – is the most secret place in my home. Though it is open always, very few are invited into it. Guests may know it´s there. But few know what it represents. Some say: it´s big! It´s not. But for a moderate downtown apartment in Oslo it may well be big.
Over the last ten years I´ve spent many hours there – to work, to meditate, to seek shelter, my hands doing their old simple and routine movements, with attention, and maybe my eyes full of tears. The darkroom is the best place for grief.
Grief may be private but also connected to having tavelled far, and then, all of a sudden, the place that once welcomed me, in Rwanda, in India, is not there any more. Genocide. Cyclone. Floods. It´s gone. What I photograped then, has vanished. Many of my negatives ”point” towards what´s now gone.
As I write this, an immense earthquake has just devastated the Kuch region of Gujarat in India. I´ve never been to Kuch. But my bond to India is strong. The places of the poor are more vulnerable than ever before. Wefts of culture disappear with the hands and eyes that are buried in the rubble.
In a way this is also ”my secret”. I´ve seen places on this planet in other ways, from other angles, in other nuances of light and shadow than the people I live among in Norway.
The darkroom is a place to digest and integrate the ”knowing” of this otherness.
There is a desire for another knowledge in me. This desire is strong and has taken me far: to songs of esoteric (marfati) knowledge sung by Muslim women on a sand island in the Brahmaputra and to devotional songs in rural and Hindu West Bengal. How to know here, in consumerist Norway, what I´ve seen there? How to carry fruitfully the knowledge originating from other sources?
The darkroom is a place for digestion. It may be seminal also. Another rhythm, no information at all, only from the negatives. The protection of darkness. The mood of concentration. In the darkroom, new insights may move me towards new constellations of form, also for texts.
To work over the trays in the darkroom is exhausting on the level of the tissue almost. I´m certainly being poisoned by the chemicals. I know this working method is old-fashioned, that a much quicker method is digital. But I want the way of the hands. I want the craft.
I may go to the darkroom with different intentions. Sometimes I must produce prints for an exhibition. Sometimes I need to see from another angle in respect to a manuscript. I then choose the darkroom for another perspective. I see in the darkness, sometimes with a piece of paper for writing near the tray for developing the print.
I´m absorbed by the secrets of the darkroom process. So many forms of time are involved. A photograph ”quotes” (John Berger) from appearances in a specific place and epoch. The technical object of the camera has its own range of time, of shutter speed. I bring the secret of my ”quotations” back to Oslo. I see the negatives with my Oslo mood and time, as I dive into the time(s) of the other places and faces. The girl and the sheep are so close to me so far away in the time of another and almost-gone culture. My dying dancing mother is right there.
In the darkroom there are the technical demands of time, exposure, precise time for the print in each tray, the time for washing of the paper print, the time for drying of the paper print, the time for pressing of the print etc. All of this together means it´s very slow.
The mind/heart of the artisan must adapt to slowness.
Secret/revelation
I may now have revealed part of a secret. I´ve used the opportunity to become (more) conscious of my karma yogic path, as my Bengali friends would have put it. The path has to do with what cannot be seen, said or written. The path is – path.
Is photography a more secret act than writing?
The sentence and the chapter can become mine in ways the photograph never can. There is always something alien in a photograph. I do not grasp its processes. I may feel desire, awe, laughter or utter sorrow watching even my own photographs. I feel homesick as well. I become more vulnerable. I am there as well. In Bengal. In Maramures. I am not only in me.
There´s no limit to what can hurt people, animals and trees in the places where I´ve carried my Leica. Yes, I´m there as well. And that may well be my secret life.

Sabtu, 31 Mei 2008

The Secret of "Being" & Gratitude



What are your being right now? Your spiritual growth tells you that you are always in a state of being. Spirituality information about beingness allows us to use the law of attraction to "be" what we truly desire. Who you are being is always a choice. It is always your choice and yours alone.

Only you can be the example that we know of as you. What are you "being?" Is the example you display to the world in alignment with your highest vision of yourself? Are the words you speak words of love and compassion and understanding spoken through conscious evaluation of our thoughts and in alignment with who you choose to be?

When you use the great command "I am" you call forth creative power that will propel your chosen evolution forward in a powerful manner. Whether you declare that "I am stupid" or "I am wisdom" makes no difference to the universe. Are you beginning to see how powerful your words really are?

The universe doesn't judge your choices. It merely hears your intentions and desires through your thoughts and then emphasized through your words and then acted out through your deeds, then mirrors what you desire into your reality. Remember, be the change that you wish to see because that is what will be. The life you are living right now is a total reflection of what you are being. How could it be otherwise?

You are living right now, and always have been living, in the present moment of now. Your past experiences are gone and the future is yet to be. There is only the present moment of now.

Who you are being "right now" is who you are. You can change that beingness in the next moment of now if you so desire. You merely choose who you desire to "be" and then you "be it." This isn't magic or rocket science. This is the reality of the process of life and this absolutely magnificent and wondrous tool we all possess called "choice."

Each choice is preceded by a thought and given power and impetus by our words. Our words are the commerce we use as we negotiate our way through this episode of our eternal life journey.

Words have the power to grease the wheels and smooth out the journey or they can cause heat and friction and overheat our "bearings" making us slow down and stop for repairs. Sometimes it is really hard to get out of the repair shop. Especially when you are living so unconsciously that you don't even realize that you have stopped.

But if you are reading this article, then I am confident (did you catch that "I am"?) that you are awake and aware that you are on this fantastic journey of this process we call Life. Because this is so, I want to talk to you about developing a "state of beingness" that will allow all the powerful words that you speak and write to be words that help create the vision that you aspire to.

This "state of being" that I want you to adopt as your second nature is to live wholly within an "attitude of gratitude."

This is a critical concept no matter where you are on the evolutionary wheel but I want to emphasis it here because this article is concerned with our words and how those words have the power of creation that can take us to where we want to go.

Words of gratitude will keep the evolutionary process moving at maximum efficiency. You see, when you speak words of gratitude you are placing yourself in a state of acceptance and love. Acceptance for "what is" and a love of the beneficent nature of the universe that provided whatever it is to you.

You are acknowledging your power as a creator and giving thanks to your co-creative partner in this giant collaboration, God.

Now, here is the key. Not only should you be verbally thankful for what already "is," but you should also declare through your written and spoken words your gratitude for what is yet to be.

By Richard Blackstone

Selasa, 20 Mei 2008

Teknik dan Strategy Forex Trading 2

Teknik Trading Forex Double ImpactTeknik ini menggunakan teknik average secara simultan. Hanya cocok digunakan untuk mata uang yang memiliki range harian tak terlalu besar dan stabil. Contoh : USD/CHF, dll. Idealnya pair yang digunakan juga memiliki spread kecil dan dikombinasikan dengan broker yang memiliki fitur robot trading (Expert Advisor)Dasar dari Teknik Double Impact ini adalah prinsip keseimbangan yang berlaku di alam semesta, sebagai contoh jika ada baik tentu ada buruk, adanya siang dan malam, adanya lelaki dan perempuan. Begitupun di forex, bila ada kenaikan tentu ada penurunan, tidak mungkin pasar yang trending (bullish) akan seterusnya tetap naik dan juga sebaliknya jika bearish, pada suatu saat tentu akan berbalik.Hal ini juga disebabkan karena adanya rasa takut (fear) dari manusia (trader), sehingga jika mereka Long (Buy) dan telah mendapatkan keuntungan tertentu yang dianggap cukup, maka mereka cenderung untuk menjualnya karena takut bila harga kembali turun (rugi). Selain itu banyak pula faktor-faktor lain yang mempengaruhi, sebagai contoh berita/news (fundamental analysis), prediksi indikator (technical analysys), pivot point, dan lain-lain.Faktor-faktor yang harus anda perhatikan dalam menggunakan Teknik forex ini adalah adalah :1. Mata Uang yang anda gunakan HARUS memiliki Range High-Low Harian tak terlalu besar dan stabil.Contoh : USD/CHF, dll2. Jumlah lot yang anda gunakan dan kecukupan modal andaPastikan anda mengerti dengan baik perhitungan leverage, margin, dan kekuatan modal yang anda punyai.3. Jika ada News penting yang berhubungan dengan mata uang yang ditradingkan, anda harus lebih berhati-hati atau menutup posisi sebelum news diumumkan (atau bahkan tidak trading pada hari itu).Contoh: Bila trade USD/CHF maka harus berhati-hati dengan news US dan Swiss.Bila anda masih pemula dan ingin mengetahui jadwal news penting dari market di seluruh dunia, silahkan membaca berita-berita (news) dari "economic calendar" di website http://www.forexfactory.comCara Step by Step trading menggunakan Teknik Double Impact exclusive milik www.BelajarForexPro.com yaitu :1. Sesuaikan modal yang anda miliki dengan minimum lot broker forex anda, yaitu setidaknya modal anda adalah 1x minimum lot broker anda. (contoh: untuk trade di broker yang minimum open Lotnya adalah mini lot maka anda harus memiliki modal $10000).2. Open order Buy atau Sell (terserah) dengan Lot 1x modal anda pada harga Market. Anda juga dapat menggunakan indikator apa saja untuk sekedar memprediksi open pertama kali yaitu misalnya perpotongan EMA 13 dengan EMA 50, MACD, dll. Sebagai catatan, anda tak perlu pening memikirkan harus open Buy atau Sell karena prinsip keseimbangan yang menjadi dasar teknik ini. Jadi silahkan anda buka sembarang posisi karena teknik ini tetap akan profitable meskipun anda keliru memilih Buy atau Sell.3. Sebagai contoh open pertama kali adalah Buy 1 Lot pada harga 1.3000, TP 20 point pada 1.3020. Kemudian anda dapat order pending order "Buy Limit" 2 Lot pada jarak 20 point di bawahnya yaitu pada 1.2980, TP 1.3000. Berikutnya order lagi "Buy Limit" 4 Lot pada 20 point di bawah order sebelumnya yaitu pada 1.2960, TP 1.2980 dan seterusnya hingga kira-kira totalnya 5 posisi, (terdiri dari 1 open posisi dan 4 pending order). Lima posisi ini tidak mutlak tapi anda dapat menyesuaikan sendiri dengan kebutuhan margin dan sisa dana anda. Ingat ! Jangan sampai terkena Margin Call.Intinya jumlah Lot adalah anda lipatkan 2x order sebelumnya yaitu : 1, 2, 4, 8, 16, 32, dan seterusnya. Jarak Gap antar order adalah 20 point, Take Profit Level sama dengan Gap (20 point) atau lebih dari Gap (contoh: 25 point). Stop Loss 0.Untuk meminimalkan resiko anda bisa mengubah setting GAP dengan 25, 30, atau sesuai selera anda dengan konsekuensi anda tahu karakter pergerakan mata uang yang anda gunakan, dan jangan lupa untuk menyesuaikan TP level dengan GAP yang anda set.Ilustrasi :(A) Buy 1 lot 1.3000 TP 1.3020 (market)(B) Buy 2 lot 1.2980 TP 1.3000 (pending Limit Buy)(C) Buy 4 lot 1.2960 TP 1.2980 (pending Limit Buy)(D) Buy 8 lot 1.2940 TP 1.2960 (pending Limit Buy)(E) Buy 16 lot 1.2920 TP 1.2940 (pending Limit Buy)(F) Buy 32 lot 1.2900 TP 1.2920 (pending Limit Buy)4. Jika Take Profit (TP) dengan LOT TERBESAR tersentuh anda harus close semua posisi secara bersamaan.Contoh bila posisi A dan B masih open (loss ataupun BEP), tapi posisi C sudah tersentuh TP maka anda bisa close semua posisi bersamaan. Anda tak perlu risau karena bila posisi dengan lot TERBESAR telah terkena TP maka loss dari posisi-posisi sebelumnya (posisi A dan B) akan tercover dan anda masih profit karena Lotnya adalah 2x lipat lot posisi sebelumnya. Logika dari teknik ini adalah bila anda menggunakan 20 point gap, dan dana anda hanya mampu hingga 5 level pending order yaitu B hingga F, maka jarak cover teknik ini hanya sekitar 100 point. Dalam arti bila pasar turun drastis sebanyak 100 point tanpa ada kenaikan sebesar TP anda (20 point) maka dana anda bisa terkena Margin Call !Karena itu, kami telah uraikan di atas bagaimana cara untuk mengurangi resiko anda dengan cara menaikkan Gap dan TP anda misalnya menjadi 25 point, sehingga coverage dari teknik Double Impact ini adalah 25 x 5 = 125 point, dengan resiko posisi anda lebih lama mendulang profit, tapi lebih aman.5. Kami sangat menyarankan anda Cut Loss (menutup) semua posisi bila floating loss anda telah mencapai X persen dari dana anda. Sebagai contoh jika modal anda $10000 lalu anda toleransi hanya 5% loss maka anda bisa close semua posisi bila floating loss anda telah mencapai sekitar $500. Lalu silahkan open lagi posisi yang SEARAH dengan yang anda close tadi. Contoh bila anda cut loss posisi BUY, anda harus mengulang dari awal membuka BUY baru (kembali ke step nomer 2). Mengapa harus searah ? karena sesuai logika keseimbangan, semakin lama bergerak ke satu arah maka semakin besar kemungkinan ia berbalik. Jadi bila anda open BUY dan harga bergerak berlawanan arah (turun) terus menerus, semakin lama maka kemungkinan untuk naik semakin besar, sehingga sebaiknya anda open dengan BUY.Memang pada awalnya anda merasa berat untuk meng-cut loss sekian persen dari dana, tapi cara ini jauh lebih aman daripada resiko terkena Margin Call. Ingat jangan serakah ! Anda tak perlu risau karena bila anda konsisten, loss tersebut akan kembali dalam waktu singkat dan bahkan menghasilkan profit yang luar biasa.

Teknik dan Strategy Forex Trading 1

Teknik Trading Forex Langit Bumi# Download dan install software jam atom (jam paling akurat di dunia) di website http://www.qlock.com. Software ini sangat penting dalam trading forex menggunakan teknik Langit & Bumi. Setelah anda install, lalu jangan lupa anda set ke jam local anda dan waktu new york (2 jam sekaligus). Gunakan format jam, menit, dan detik, karena defaultnya hanya Jam dan menit saja.# Gunakan pair GBP/USD (untuk news US dan UK) dan USD/CAD (untuk news Canada). Sebelum anda trade bisa mengecek range HIGH LOW daily mata uang yang bersangkutan apa sudah di atas 100. Kalau sudah di atas 100 lebih baik anda set target kecil saja atau no trade. Untuk idealnya adalah di bawah 70 poin.#Silahkan cek Jadwal News Penting di http://www.belajarforexpro.com/langit.php# Gunakan 10X sampai dengan 50X modal anda (dengan catatan tak ada posisi lain yang anda buka). Contoh bila modal anda $1000 anda bisa gunakan Quantity 10000 atau 50000.# Set chart ke timeframe 5 menit. Pesan 2 pending order Buy Stop dan Sell Stop 8 atau 10 poin (kecuali Non Farm Payroll sebaiknya 15 poin atau lebih misalnya 16-18 poin) di ATAS dan di BAWAH HARGA SAAT ITU pada TEPAT 2 atau 1,5 menit sebelum news keluar (kurang dari 1 menit bila anda menggunakan robot). (Contoh : harga sekarang Bid/Offer 1.1950/55, pasang Stop Buy di 1.1955 + 0.0010 = 1.1965 dan Stop Sell di 1.1950 - 0.0010 = 1.1940).Sangat disarankan memakai stop loss 20 sampai dengan 30 poin (max) dan sedangkan targetnya bisa disesuaikan tingkat kepetingan news yg akan keluar misalnya 10, 15 atau 20 (untuk amannya set target 10 jika jarak dari current price adalah 11 point, karena biasanya berita-berita yang cukup penting biasanya bergerak minimal sekitar 20-an poin. Ingat yang penting adalah trading dengan aman! Khusus untuk Non Farm Payroll bisa diset target 15 hingga 30 poin). Untuk broker tertentu target Mungkin anda berpikir "kenapa targetnya kecil sekali ?" Jawabannya : karena kami sangat memprioritaskan "Konstanitas" dan "Keamanan" !Tapi coba anda perhitungkan. Anggap saja 1 bulan anda bisa mendapatkan minimal 100 point. Bila modal anda $1000, maka lot yang anda gunakan (contoh 40x modal) adalah 40 X 1000 = 40K Lot. Untuk Gbp/Usd nilai per point adalah $4 bila menggunakan 40K Lot. Maka profit anda per bulan setidaknya 100 x 4 = $400 atau 40%. Cukup luar biasa. Mungkin teknik lain dapat menghasilkan ratusan point per bulan. Tapi pertanyaannya apakah hasil tersebut konstan setiap bulan ? Percuma saja bila beberapa bulan profit ratusan point tapi bulan berikutnya loss ratusan point atau bahkan terkena Margin Call.# Setelah pending order selesai anda aktifkan. Monitor terus chart menjelang news keluar hingga 2 menit setelah news keluar. Ada 2 kemungkinan :1) Jika pasar bergerak cepat setelah news diumumkan maka biasanya salah satu dari dua order tersebut akan TEREKSEKUSI. Begitu salah satu order TEREKSEKUSI, SEGERA cancel order yang lain TANPA menunggu apakah posisi open anda sudah profit.Ada 2 kemungkinan :A. TARGET anda akan terkena dan Profit dalam waktu kurang dari 1 menit setelah pengumuman (misalnya news US keluar pukul 20.30, maka biasanya tidak sampai 20.31 salah satu dari kedua order akan tersentuh atau bahkan profit).B. TARGET anda belum terkena tapi posisi anda yang tereksekusi tadi masih open. Jika jarak hi low sebelum news sudah 100, maka sebaiknya anda close meskipun anda profit / loss sedikit atau maksimal menunggu hingga hingga 1 menit. Tapi bila hi low harian sebelum berita diumumkan masih di bawah 70 poin (ideal) maka maksimal dapat anda biarkan hingga 2 menit. (Bagi anda yang mengerti fundamental news, paling baik bila anda dapat mengetahui hasil news aktualnya, bila selisih hasil news aktual dan forecast cukup besar maka anda dapat menunggu hingga 2 menit atau bahkan lebih karena kemungkinan harga akan terus bergerak)Begitu salah satu order tersentuh, tunggu hingga 1 atau 2 menit. Bila dalam 1 atau 2 menit belum menyentuh target, maka dapat anda close manualKhusus untuk Non Farm Payroll tak perlu dicancel setelah salah satu tersentuh karena seandainya posisi buy anda rugi karena harga berbalik maka tak lama kemudian posisi sell anda akan profit, sehingga setidaknya loss anda dapat diminimalkan.2) Jika pasar bergerak lambat atau tak bergerak dan dua order tersebut tak tersentuh hingga 1 menit setelah news diumumkan, segera cancel keduanya.#Performance teknik ini dapat dilihat di http://www.belajarforexpro.com/langit.phpNB : Hasil eksekusi trading bisa berbeda dengan yang tercantum di website partner kami : http://www.belajarforexpro.com/langit.php karena berbeda Broker Forex

Apakah kelebihan Forex dibandingkan investasi lain?

Tanpa Komisi (Forex Trading Online)
Anda bisa mendapatkan keuntungan 2 arah yaitu meskipun market turun ataupun naik
Forex adalah pasar 24 jam secara berkesinambungan sehingga anda mempunyai kemungkinan menghasilkan uang 24 jam penuh. Forex memungkinkan anda melakukan transaksi 5x24 jam seminggu, mulai hari Minggu pukul 17.00 Waktu New York hingga Jumat pukul 17.00 Waktu new York.
Forex adalah produk investasi yang sangat liquid, dalam arti anda dapat kapan pun menarik dana anda tanpa dikenakan pinalti
Anda bisa menggunakan leverage faktor multiplier/pengali yaitu misalnya anda menggunakan modal $1000 bisa trading menggunakan $100000 untuk broker yang mempunyai perbandingan leverage 1:100. Contoh : anda mempunyai modal 1 juta dan dengan modal 1 juta tersebut anda bisa mendapatkan pinjaman 100 kalinya atau 100 juta, maka keuntungan anda akan jauh lebih besar dibandingkan tanpa menggunakan leverage yaitu dengan hanya menggunakan modal 1 juta saja

Selasa, 13 Mei 2008

Perusahaan Khusus yang akan membayar sebanyak Rp50.000.000 SEBULAN tanpa perlu melakukan apa-apa ! Sangat mudah siapa pun bisa melakukannya !

Baru-baru ini kami telah membuat kajian dan penyiasatan mengenai satu sistem keuangan yang begitu mudah untuk dilakukan , yang mana kami tidak pernah memikirkannya dahulu. Pada dasarnya anda akan menerima bayaran walaupun anda tidak melakukan apa-apa pekerjaan ! Perusahaan yang dimaksudkan ialah pengendalian sistem telepon berbayar 0809# .

Kami pasti yakin anda sudah biasa dengan iklan komersial di surat kabar atau majalah yang menawarkan program ‘sambungan sahabat’ artis , sepak bola, telekuiz , dan lain-lain rancangan berbayar .

Beberapa tahun dahulu hanya ada beberapa buah perusahaan pengendali rancangan berbayar seperti ini, tetapi sekarang ia sudah banyak ditawarkan . Kami telah meluangkan waktu dan banyak berbicara dengan orang-orang yang terlibat dalam industri sambungan 0809#, dan apa yang kami temui adalah sangat mengejutkan sekali .

Banyak orang yang memperoleh penghasilan lebih dari Rp50.000.000 hanya dengan memperkenalkan sambungan ini. Kami telah memperoleh Rp28.000.000 pada bulan pertama beroperasi. Anda boleh menghubungi perusahaan pengendali sambungan 0809# ini dan menyatakan bahwa anda mau membangunkan atau memulai sambungan berbayar anda sendiri .

Anda akan mendapati pegawai mereka sangat baik dan bersedia menolong anda. Mungkin sebagian daripada mereka adalah sebagai broker yang menjadi orang tengah yang bisa membantu anda mempromosikan sambungan khusus yang anda minta pada waktu yang sesuai .

Anda akan menjadi ‘pemasok informasi ’ atau information provider (IP). Orang banyak akan menelepon nombor yang anda iklankan untuk mengetahui tentang lagu-lagu , horoskop, sahabat, cerita seram, pelajaran dan informasi -informasi penting terkini .

Anda boleh menawarkan apa-apa saja tajuk/judul yang difikirkan sesuai dan bisa menarik perhatian orang banyak untuk menelepon sambungan yang anda promosikan .

Sebagian daripada perusahaan pengendali ini sudah mempunyai program-program khusus yang disediakan dan anda hanya perlu memilih saja dan memberitahu mereka kapan anda mau memulainya .

Pada kebiasaannya anda hanya perlu memperuntukkan waktu sebanyak 1 jam sebulan untuk membuat beberapa buah iklan di dalam beberapa buah perusahaan penerbitan yang mengiklankan sambungan 0809# milik anda .

Secara otomatis orang banyak akan menelepon nombor sambungan anda untuk mendapatkan berbagai informasi yang dikehendaki dengan cepat tanpa melalui cara pos yang agak lambat.

Anda akan mendapat bayaran walaupun daripada mereka yang tidak mempunyai kartu kredit. Inilah salah satu cara mudah dimana anda bisa mendapatkan uang yang banyak hanya dengan memberikan nombor telepon istimewa anda kepada mereka . Itulah kelebihan dan kehebatan program ini ! .

Percayalah , kami telah melihat sendiri laporan-laporan di dalam komputer mengenai orang-orang yang telah memperoleh penghasilan lumayan daripada nombor sambungan khusus yang istimewa ini . Ia sungguh hebat !!.

Mulailah dari sekarang !

Sabtu, 10 Mei 2008

5 Strategi Kesuksesan Dan Kekayaan

1. Sikap

Sikap adalah satu faktor penentu kesuksesan dalam apapun juga perkara yang anda lakukan. Einstein mengatakan bahwa sikap adalah 99% penentu kesuksesan atau kegagalan seseorang.

Anda semestinya mempunyai sikap yang positif dalam apapun juga bidang yang anda lakukan, jika anda mau memperoleh kesuksesan.

Apakah anda sedang sadar, hendak melelapkan mata, bekerja – apa pun juga yang anda lakukan, anda semestinya menanamkan sikap positif. Apabila suatu perkara tidak menjadi seperti yang anda harapkan, anda seharusnya terus bersikap positif. Jika anda bangun lewat, jangan merasa bosan, sebaliknya anda harus berfikiran positif dan berkata kepada diri anda sendiri “ ok, hari ini aku terlewat bangun, sekarang aku perlu lakukan yang terbaik untuk hari ini”.

Saya tidak percaya bahwa mereka yang sukses pada hari ini bisa mencapai tahap itu tanpa mempunyai sikap yang baik dan positif.

Sebenarnya lebih mudah untuk berfikiran negatif, dan untuk pengetahuan anda, untuk berfikiran positif memerlukan sedikit usaha. Tempelkan satu nota di atas meja anda, di dalam mobil, cermin dikamar mandi yang tertulis “SIKAP”. Apabila anda melihat nota itu, berhenti sejenak dan berfikir tentang perkara yang sudah berlaku pada hari itu, dan jika ada kalanya anda merasa tidak berfikiran positif, fikirkan semula dan teruskan kerja yang anda lakukan.

Jika anda bersikap positif, semua perkara yang anda lakukan akan menjadi lebih mudah. Jika ada perkara yang tidak suka anda lakukan, jangan biarkan sehingga pada saat akhir, bahkan lakukan dulu perkara tersebut dan fikirkan “Saya mau mengerjakan kerja ini sampai selesai kemudian saya bisa buat kerja yang saya suka !”. Cobalah tehnik ini dan anda pasti akan merasakan perbedaannya.


2. Ambil tindakan

Ini merupakan satu isu yang besar kepada kebanyakan orang, mereka mempunyai ide bisnis yang baik, mereka memberitahu kepada kawan-kawan tentang bisnis yang hendak dimulai, kawan-kawan menjadi positif dan mendukung. Kemudian mereka beritahu kepada beberapa orang lain sehinggalah menjadi senyap begitu saja.

Jika anda mempunyai ide yang bagus tidak menjadi masalah, tetapi anda perlu membuat tindakan. Kemudian apabila anda sudah mulai melakukan sesuatu, anda perlu mengambil beberapa lagi langkah seterusnya sehinggalah mencapai kesuksesan.

Jika anda mempunyai peluang atau ide pada masa ini, mungkin sesuatu yang sudah lama anda fikirkan, berhenti berbicara dan berfikir tentangnya – LAKUKAN SAJA.

Saya mempunyai banyak sahabat yang datang berjumpa dan berbicara tentang ide-ide bisnis seperti seolah-olah mereka yang menyuruh saya melakukan bisnis tersebut. Saya bisa menolong mereka, beri pendapat, tetapi yang menyedihkan ialah 90% daripada mereka tidak pernah membuat tindakan. Jika anda tidak membuat tindakan, anda membohongi hak anda untuk satu kesuksesan.


3. Tukar Bagaimana Anda Diprogramkan

Sejak dari bangku persekolahan lagi kita selalu terfikir seperti yang selalu diberitahu oleh orang-orang dewasa bahwa “belajar yang pandai supaya dapat pekerjaan yang baik”. Saya harap anda jangan salah anggap, saya pikir apabila kita di sekolah kita perlu belajar apa yang kita butuhkan kemudian buka bisnis anda sendiri!

80% jutawan pada hari ini mencapai impian mereka dengan memulai bisnis sendiri. Mungkin anda sudah maklum, jika anda benar-benar mau kebebasan keuangan, masa depannya ialah dengan membuka usaha sendiri.

Sudah tentu bisnis sendiri harus menanggung resiko, dan anda bisa mengurangi resiko tersebut dengan memulainya secara sampingan, dan gunakan tehnik yang saya tunjukkan dengan modal yang kecil, tetapi imbalannya sangat banyak dan menguntungkan.


4. Tuliskan Apa Yang Anda Pikirkan

Saya tidak peduli sebaik apapun memori yang anda miliki, tetapi mengapa perlu dibiarkan saja. Mengapa perlu menanggung resiko jika terlupa sesuatu yang penting? Tuliskan perkara yang ada di pikiran supaya anda menolong melegakan otak anda yang penuh dengan informasi. Apabila anda menulisnya anda tidak perlu takut jika terlupa pada waktu yang diperlukan.

Jika anda mempunyai ide – tuliskan. Jika anda mempunyai masalah – tuliskan.

Apabila anda menulis suatu masalah, anda akan mendapati bahwa anda dapat berpikir dengan lebih jelas, dan satu waktu nanti perkara tersebut dapat diselesaikan. Tehnik ini tampak mudah, tapi jika anda mulai menggunakannya, anda pasti akan lihat perbedaannya kelak.

5. Tetapkan Tujuan Dan Impian

Jika anda tidak mempunyai sasaran, anda tidak akan dapat apa-apa. Anda harus mempunyai tujuan hidup, anda perlu tahu ke mana impian/cita-cita anda, berusaha untuk mencapainya dan senantiasa ingat akan impian anda. Saya berjumpa dengan banyak orang yang mungkin tidak mengerti tentang konsep ini yang berkata “impian aku ialah untuk menjadi jutawan dalam waktu 5 tahun” tetapi apabila anda tanyakan bagaimana untuk mencapainya, mereka hanya diam saja.

Anda mesti mempunyai tujuan jangka panjang, untuk tempo 5 tahun yang akan datang, kemudian anda perlu berusaha untuk mencapainya, kemudian tetapkan impian jangka pendek yang lebih mudah dicapai contohnya impian setahun, sebulan dan seminggu.

Saya harap 5 strategi di atas dapat menolong anda untuk mencapai kesuksesan dengan lebih mudah dan cepat.

Senin, 05 Mei 2008

Apa yang diperlukan untuk memulai Trading Forex (Valas) ?

  1. Personal Computer (PC) (untuk anda yang sering bepergian, ada broker tertentu yang memiliki fasilitas trading dengan PDA)
  2. Koneksi Internet yang stabil dan cukup cepat (minimal dial up connection, sebaiknya broadband seperti ADSL, Cable, dan lain-lain)
  3. Modal, jika anda pemula silahkan menggunakan demo dulu sebelum memulai trading sesungguhnya. Bagi anda yang ingin serius di forex, kami sarankan minimal $300 atau sangat direkomendasikan minimal $500 untuk trading Mini Lot (10.000).
  4. Broker Forex (Valas) yang aman dan terpercaya sehingga keamanan dana anda terjamin

Apa kelebihan Trading Forex (Valas) Online dibandingkan dengan trading secara tradisional (offline)?

  • Banyak broker online yang memberikan fasilitas bebas komisi, sedangkan broker offline di Indonesia biasanya mengenakan charge $50 setiap settlement/open hingga close posisi
  • Anda bisa memantau secara langsung posisi yang anda buka dan keputusan beli atau jual 100% di tangan anda. Baik kapan anda ingin menutup posisi, berapa besar yang mau anda mainkan, pasang di posisi berapa, dll.
  • Anda dapat belajar forex secara langsung praktik tanpa menggunakan jasa broker yang seringkali kurang bertanggung jawab terhadap untung/rugi dari kliennya (karena meskipun menang atau kalah, pada akhirnya broker anda akan tetap mendapat komisi)
  • Anda bisa menggunakan jumlah lot flexible (sangat membantu anda yang mempunyai modal terbatas)
  • Spread (selisih harga jual dan beli) yang kecil (semakin kecil semakin baik) sehingga kemungkinan profit anda lebih tinggi
  • Jarak pesan posisi (pending order) yang relatif kecil (10 poin) dan tutup posisi yang biasanya hanya 1-5 poin saja. Bandingkan dengan broker offline yang minimal pending order harus 30 poin dari running dan minimal tutup posisi 10 poin agar bisa impas.
  • Anda bisa trading langsung dengan penyedia layanan (broker) tanpa perantara (middleman, seringkali di Indonesia disalahartikan sebagai broker)
  • Anda akan mendapatkan pengalaman yang sangat berharga dengan cara berlatih trading dan praktik langsung dengan cara membuka account demo secara gratis dan menggunakan sofware trading yang banyak tersedia di internet.
  • Tersedia banyak sekali indikator, analisa, dan software trading yang sangat lengkap di internet.

ISLAMIC FOREX TRADING

1. The Basic Exchange ContractsThere is a general consensus among Islamic jurists on the view that currencies of different countries can be exchanged on a spot basis at a rate different from unity, since currencies of different countries are distinct entities with different values or intrinsic worth, and purchasing power. There also seems to be a general agreement among a majority of scholars on the view that currency exchange on a forward basis is not permissible, that is, when the rights and obligations of both parties relate to a future date. However, there is considerable difference of opinion among jurists when the rights of either one of the parties, which is same as obligation of the counterparty, is deferred to a future date.
To elaborate, let us consider the example of two individuals A and B who belong to two different countries, India and US respectively. A intends to sell Indian rupees and buy U.S dollars. The converse is true for B. The rupee-dollar exchange rate agreed upon is 1:20 and the transaction involves buying and selling of $50. The first situation is that A makes a spot payment of Rs1000 to B and accepts payment of $50 from B. The transaction is settled on a spot basis from both ends. Such transactions are valid and Islamically permissible. There are no two opinions about the same. The second possibility is that settlement of the transaction from both ends is deferred to a future date, say after six months from now. This implies that both A and B would make and accept payment of Rs1000 or $50, as the case may be, after six months. The predominant view is that such a contract is not Islamically permissible. A minority view considers it permissible. The third scenario is that the transaction is partly settled from one end only. For example, A makes a payment of Rs1000 now to B in lieu of a promise by B to pay $50 to him after six months. Alternatively, A accepts $50 now from B and promises to pay Rs1000 to him after six months. There are diametrically opposite views on the permissibility of such contracts which amount to bai-salam in currencies. The purpose of this paper is to present a comprehensive analysis of various arguments in support and against the permissibility of these basic contracts involving currencies. The first form of contracting involving exchange of countervalues on a spot basis is beyond any kind of controversy. Permissibility or otherwise of the second type of contract in which delivery of one of the countervalues is deferred to a future date, is generally discussed in the framework of riba prohibition. Accordingly we discuss this contract in detail in section 2 dealing with the issue of prohibition of riba. Permissibility of the third form of contract in which delivery of both the countervalues is deferred, is generally discussed within the framework of reducing risk and uncertainty or gharar involved in such contracts. This, therefore, is the central theme of section 3 which deals with the issue of gharar. Section 4 attempts a holistic view of the Sharia relates issues as also the economic significance of the basic forms of contracting in the currency market.
2. The Issue of Riba ProhibitionThe divergence of views1 on the permissibility or otherwise of exchange contracts in currencies can be traced primarily to the issue of riba prohibition.
The need to eliminate riba in all forms of exchange contracts is of utmost importance. Riba in its Sharia context is generally defined2 as an unlawful gain derived from the quantitative inequality of the countervalues in any transaction purporting to effect the exchange of two or more species (anwa), which belong to the same genus (jins) and are governed by the same efficient cause (illa). Riba is generally classified into riba al-fadl (excess) and riba al-nasia (deferment) which denote an unlawful advantage by way of excess or deferment respectively. Prohibition of the former is achieved by a stipulation that the rate of exchange between the objects is unity and no gain is permissible to either party. The latter kind of riba is prohibited by disallowing deferred settlement and ensuring that the transaction is settled on the spot by both the parties. Another form of riba is called riba al-jahiliyya or pre-Islamic riba which surfaces when the lender asks the borrower on the maturity date if the latter would settle the debt or increase the same. Increase is accompanied by charging interest on the amount initially borrowed.
The prohibition of riba in the exchange of currencies belonging to different countries requires a process of analogy (qiyas). And in any such exercise involving analogy (qiyas), efficient cause (illa) plays an extremely important role. It is a common efficient cause (illa), which connects the object of the analogy with its subject, in the exercise of analogical reasoning. The appropriate efficient cause (illa) in case of exchange contracts has been variously defined by the major schools of Fiqh. This difference is reflected in the analogous reasoning for paper currencies belonging to different countries.
A question of considerable significance in the process of analogous reasoning relates to the comparison between paper currencies with gold and silver. In the early days of Islam, gold and silver performed all the functions of money (thaman). Currencies were made of gold and silver with a known intrinsic value (quantum of gold or silver contained in them). Such currencies are described as thaman haqiqi, or naqdain in Fiqh literature. These were universally acceptable as principal means of exchange, accounting for a large chunk of transactions. Many other commodities, such as, various inferior metals also served as means of exchange, but with limited acceptability. These are described as fals in Fiqh literature. These are also known as thaman istalahi because of the fact that their acceptability stems not from their intrinsic worth, but due to the status accorded by the society during a particular period of time. The above two forms of currencies have been treated very differently by early Islamic jurists from the standpoint of permissibility of contracts involving them. The issue that needs to be resolved is whether the present age paper currencies fall under the former category or the latter. One view is that these should be treated at par with thaman haqiqi or gold and silver, since these serve as the principal means of exchange and unit of account like the latter. Hence, by analogous reasoning, all the Sharia-related norms and injunctions applicable to thaman haqiqi should also be applicable to paper currency. Exchange of thaman haqiqi is known as bai-sarf, and hence, the transactions in paper currencies should be governed by the Sharia rules relevant for bai-sarf. The contrary view asserts that paper currencies should be treated in a manner similar to fals or thaman istalahi because of the fact that their face value is different from their intrinsic worth. Their acceptability stems from their legal status within the domestic country or global economic importance (as in case of US dollars, for instance).
2.1. A Synthesis of Alternative Views
2.1.1. Analogical Reasoning (Qiyas) for Riba Prohibition
The prohibition of riba is based on the tradition that the holy prophet (peace be upon him) said, "Sell gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, in same quantities on the spot; and when the commodities are different, sell as it suits you, but on the spot." Thus, the prohibition of riba applies primarily to the two precious metals (gold and silver) and four other commodities (wheat, barley, dates and salt). It also applies, by analogy (qiyas) to all species which are governed by the same efficient cause (illa) or which belong to any one of the genera of the six objects cited in the tradition. However, there is no general agreement among the various schools of Fiqh and even scholars belonging to the same school on the definition and identification of efficient cause (illa) of riba.
For the Hanafis, efficient cause (illa) of riba has two dimensions: the exchanged articles belong to the same genus (jins); these possess weight (wazan) or measurability (kiliyya). If in a given exchange, both the elements of efficient cause (illa) are present, that is, the exchanged countervalues belong to the same genus (jins) and are all weighable or all measurable, then no gain is permissible (the exchange rate must be equal to unity) and the exchange must be on a spot basis. In case of gold and silver, the two elements of efficient cause (illa) are: unity of genus (jins) and weighability. This is also the Hanbali view according to one version3. (A different version is similar to the Shafii and Maliki view, as discussed below.) Thus, when gold is exchanged for gold, or silver is exchanged for silver, only spot transactions without any gain are permissible. It is also possible that in a given exchange, one of the two elements of efficient cause (illa) is present and the other is absent. For example, if the exchanged articles are all weighable or measurable but belong to different genus (jins) or, if the exchanged articles belong to same genus (jins) but neither is weighable nor measurable, then exchange with gain (at a rate different from unity) is permissible, but the exchange must be on a spot basis. Thus, when gold is exchanged for silver, the rate can be different from unity but no deferred settlement is permissible. If none of the two elements of efficient cause (illa) of riba are present in a given exchange, then none of the injunctions for riba prohibition apply. Exchange can take place with or without gain and both on a spot or deferred basis.
Considering the case of exchange involving paper currencies belonging to different countries, riba prohibition would require a search for efficient cause (illa). Currencies belonging to different countries are clearly distinct entities; these are legal tender within specific geographical boundaries with different intrinsic worth or purchasing power. Hence, a large majority of scholars perhaps rightly assert that there is no unity of genus (jins). Additionally, these are neither weighable nor measurable. This leads to a direct conclusion that none of the two elements of efficient cause (illa) of riba exist in such exchange. Hence, the exchange can take place free from any injunction regarding the rate of exchange and the manner of settlement. The logic underlying this position is not difficult to comprehend. The intrinsic worth of paper currencies belonging to different countries differ as these have different purchasing power. Additionally, the intrinsic value or worth of paper currencies cannot be identified or assessed unlike gold and silver which can be weighed. Hence, neither the presence of riba al-fadl (by excess), nor riba al-nasia (by deferment) can be established.
The Shafii school of Fiqh considers the efficient cause (illa) in case of gold and silver to be their property of being currency (thamaniyya) or the medium of exchange, unit of account and store of value . This is also the Maliki view. According to one version of this view, even if paper or leather is made the medium of exchange and is given the status of currency, then all the rules pertaining to naqdain, or gold and silver apply to them. Thus, according to this version, exchange involving currencies of different countries at a rate different from unity is permissible, but must be settled on a spot basis. Another version of the above two schools of thought is that the above cited efficient cause (illa) of being currency (thamaniyya) is specific to gold and silver, and cannot be generalized. That is, any other object, if used as a medium of exchange, cannot be included in their category. Hence, according to this version, the Sharia injunctions for riba prohibition are not applicable to paper currencies. Currencies belonging to different countries can be exchanged with or without gain and both on a spot or deferred basis.
Proponents of the earlier version cite the case of exchange of paper currencies belonging to the same country in defense of their version. The consensus opinion of jurists in this case is that such exchange must be without any gain or at a rate equal to unity and must be settled on a spot basis. What is the rationale underlying the above decision? If one considers the Hanafi and the first version of Hanbali position then, in this case, only one dimension of the efficient cause (illa) is present, that is, they belong to the same genus (jins). But paper currencies are neither weighable nor measurable. Hence, Hanafi law would apparently permit exchange of different quantities of the same currency on a spot basis. Similarly if the efficient cause of being currency (thamaniyya) is specific only to gold and silver, then Shafii and Maliki law would also permit the same. Needless to say, this amounts to permitting riba-based borrowing and lending. This shows that, it is the first version of the Shafii and Maliki thought which underlies the consensus decision of prohibition of gain and deferred settlement in case of exchange of currencies belonging to the same country. According to the proponents, extending this logic to exchange of currencies of different countries would imply that exchange with gain or at a rate different from unity is permissible (since there no unity of jins), but settlement must be on a spot basis.
2.1.2 Comparison between Currency Exchange and Bai-Sarf
Bai-sarf is defined in Fiqh literature as an exchange involving thaman haqiqi, defined as gold and silver, which served as the principal medium of exchange for almost all major transactions.
Proponents of the view that any exchange of currencies of different countries is same as bai-sarf argue that in the present age paper currencies have effectively and completely replaced gold and silver as the medium of exchange. Hence, by analogy, exchange involving such currencies should be governed by the same Sharia rules and injunctions as bai-sarf. It is also argued that if deferred settlement by either parties to the contract is permitted, this would open the possibilities of riba-al nasia.
Opponents of categorization of currency exchange with bai-sarf however point out that the exchange of all forms of currency (thaman) cannot be termed as bai-sarf. According to this view bai-sarf implies exchange of currencies made of gold and silver (thaman haqiqi or naqdain) alone and not of money pronounced as such by the state authorities (thaman istalahi). The present age currencies are examples of the latter kind. These scholars find support in those writings which assert that if the commodities of exchange are not gold or silver, (even if one of these is gold or silver) then, the exchange cannot be termed as bai-sarf. Nor would the stipulations regarding bai-sarf be applicable to such exchanges. According to Imam Sarakhsi4 "when an individual purchases fals or coins made out of inferior metals, such as, copper (thaman istalahi) for dirhams (thaman haqiqi) and makes a spot payment of the latter, but the seller does not have fals at that moment, then such exchange is permissible........ taking possession of commodities exchanged by both parties is not a precondition" (while in case of bai-sarf, it is.) A number of similar references exist which indicate that jurists do not classify an exchange of fals (thaman istalahi) for another fals (thaman istalahi) or gold or silver (thaman haqiqi), as bai-sarf.
Hence, the exchanges of currencies of two different countries which can only qualify as thaman istalahi can not be categorized as bai-sarf. Nor can the constraint regarding spot settlement be imposed on such transactions. It should be noted here that the definition of bai-sarf is provided Fiqh literature and there is no mention of the same in the holy traditions. The traditions mention about riba, and the sale and purchase of gold and silver (naqdain) which may be a major source of riba, is described as bai-sarf by the Islamic jurists. It should also be noted that in Fiqh literature, bai-sarf implies exchange of gold or silver only; whether these are currently being used as medium of exchange or not. Exchange involving dinars and gold ornaments, both quality as bai-sarf. Various jurists have sought to clarify this point and have defined sarf as that exchange in which both the commodities exchanged are in the nature of thaman, not necessarily thaman themselves. Hence, even when one of the commodities is processed gold (say, ornaments), such exchange is called bai-sarf.
Proponents of the view that currency exchange should be treated in a manner similar to bai-sarf also derive support from writings of eminent Islamic jurists. According to Imam Ibn Taimiya "anything that performs the functions of medium of exchange, unit of account, and store of value is called thaman, (not necessarily limited to gold & silver). Similar references are available in the writings of Imam Ghazzali5 As far as the views of Imam Sarakhshi is concerned regarding exchange involving fals, according to them, some additional points need to be taken note of. In the early days of Islam, dinars and dirhams made of gold and silver were mostly used as medium of exchange in all major transactions. Only the minor ones were settled with fals. In other words, fals did not possess the characteristics of money or thamaniyya in full and was hardly used as store of value or unit of account and was more in the nature of commodity. Hence there was no restriction on purchase of the same for gold and silver on a deferred basis. The present day currencies have all the features of thaman and are meant to be thaman only. The exchange involving currencies of different countries is same as bai-sarf with difference of jins and hence, deferred settlement would lead to riba al-nasia.
Dr Mohamed Nejatullah Siddiqui illustrates this possibility with an example6. He writes "In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, if an individual purchases $50 at the rate of 1:22 (settlement of his obligation in rupees deferred to a future date), then it is highly probable that he is , in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the $50 purchased on credit at spot rate)" Thus, sarf can be converted into interest-based borrowing & lending.
2.1.3 Defining Thamaniyya is the Key ?
It appears from the above synthesis of alternative views that the key issue seems to be a correct definition of thamaniyya. For instance, a fundamental question that leads to divergent positions on permissibility relates to whether thamaniyya is specific to gold and silver, or can be associated with anything that performs the functions of money. We raise some issues below which may be taken into account in any exercise in reconsideration of alternative positions.
It should be appreciated that thamaniyya may not be absolute and may vary in degrees. It is true that paper currencies have completely replaced gold and silver as medium of exchange, unit of account and store of value. In this sense, paper currencies can be said to possess thamaniyya. However, this is true for domestic currencies only and may not be true for foreign currencies. In other words, Indian rupees possess thamaniyya within the geographical boundaries of India only, and do not have any acceptability in US. These cannot be said to possess thamaniyya in US unless a US citizen can use Indian rupees as a medium of exchange, or unit of account, or store of value. In most cases such a possibility is remote. This possibility is also a function of the exchange rate mechanism in place, such as, convertibility of Indian rupees into US dollars, and whether a fixed or floating exchange rate system is in place. For example, assuming free convertibility of Indian rupees into US dollars and vice versa, and a fixed exchange rate system in which the rupee-dollar exchange rate is not expected to increase or decrease in the foreseeable future, thamaniyya of rupee in US is considerably improved. The example cited by Dr Nejatullah Siddiqui also appears quite robust under the circumstances. Permission to exchange rupees for dollars on a deferred basis (from one end, of course) at a rate different from the spot rate (official rate which is likely to remain fixed till the date of settlement) would be a clear case of interest-based borrowing and lending. However, if the assumption of fixed exchange rate is relaxed and the present system of fluctuating and volatile exchange rates is assumed to be the case, then it can be shown that the case of riba al-nasia breaks down. We rewrite his example: "In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, if an individual purchases $50 at the rate of 1:22 (settlement of his obligation in rupees deferred to a future date), then it is highly probable that he is , in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the $50 purchased on credit at spot rate)" This would be so, only if the currency risk is non-existent (exchange rate remains at 1:20), or is borne by the seller of dollars (buyer repays in rupees and not in dollars). If the former is true, then the seller of the dollars (lender) receives a predetermined return of ten percent when he converts Rs1100 received on the maturity date into $55 (at an exchange rate of 1:20). However, if the latter is true, then the return to the seller (or the lender) is not predetermined. It need not even be positive. For example, if the rupee-dollar exchange rate increases to 1:25, then the seller of dollar would receive only $44 (Rs 1100 converted into dollars) for his investment of $50.
Here two points are worth noting. First, when one assumes a fixed exchange rate regime, the distinction between currencies of different countries gets diluted. The situation becomes similar to exchanging pounds with sterlings (currencies belonging to the same country) at a fixed rate. Second, when one assumes a volatile exchange rate system, then just as one can visualize lending through the foreign currency market (mechanism suggested in the above example), one can also visualize lending through any other organized market (such as, for commodities or stocks.) If one replaces dollars for stocks in the above example, it would read as: "In a given moment in time when the market price of stock X is Rs 20, if an individual purchases 50 stocks at the rate of Rs 22 (settlement of his obligation in rupees deferred to a future date), then it is highly probable that he is , in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the 50 stocks purchased on credit at current price)" In this case too as in the earlier example, returns to the seller of stocks may be negative if stock price rises to Rs 25 on the settlement date. Hence, just as returns in the stock market or commodity market are Islamically acceptable because of the price risk, so are returns in the currency market because of fluctuations in the prices of currencies.
A unique feature of thaman haqiqi or gold and silver is that the intrinsic worth of the currency is equal to its face value. Thus, the question of different geographical boundaries within which a given currency, such as, dinar or dirham circulates, is completely irrelevant. Gold is gold whether in country A or country B. Thus, when currency of country A made of gold is exchanged for currency of country B, also made of gold, then any deviation of the exchange rate from unity or deferment of settlement by either party cannot be permitted as it would clearly involve riba al-fadl and also riba al-nasia. However, when paper currencies of country A is exchanged for paper currency of country B, the case may be entirely different. The price risk (exchange rate risk), if positive, would eliminate any possibility of riba al-nasia in the exchange with deferred settlement. However, if price risk (exchange rate risk) is zero, then such exchange could be a source of riba al-nasia if deferred settlement is permitted7.
Another point that merits serious consideration is the possibility that certain currencies may possess thamaniyya, that is, used as a medium of exchange, unit of account, or store of value globally, within the domestic as well as foreign countries. For instance, US dollar is legal tender within US; it is also acceptable as a medium of exchange or unit of account for a large volume of transactions across the globe. Thus, this specific currency may be said to possesses thamaniyya globally, in which case, jurists may impose the relevant injunctions on exchanges involving this specific currency to prevent riba al-nasia. The fact is that when a currency possesses thamaniyya globally, then economic units using this global currency as the medium of exchange, unit of account or store of value may not be concerned about risk arising from volatility of inter-country exchange rates. At the same time, it should be recognized that a large majority of currencies do not perform the functions of money except within their national boundaries where these are legal tender.
Riba and risk cannot coexist in the same contract. The former connotes a possibility of returns with zero risk and cannot be earned through a market with positive price risk. As has been discussed above, the possibility of riba al-fadl or riba al-nasia may arise in exchange when gold or silver function as thaman; or when the exchange involves paper currencies belonging to the same country; or when the exchange involves currencies of different countries following a fixed exchange rate system. The last possibility is perhaps unIslamic8 since price or exchange rate of currencies should be allowed to fluctuate freely in line with changes in demand and supply and also because prices should reflect the intrinsic worth or purchasing power of currencies. The foreign currency markets of today are characterised by volatile exchange rates. The gains or losses made on any transaction in currencies of different countries, are justified by the risk borne by the parties to the contract.
2.1.4. Possibility of Riba with Futures and Forwards
So far, we have discussed views on the permissibility of bai salam in currencies, that is, when the obligation of only one of the parties to the exchange is deferred. What are the views of scholars on deferment of obligations of both parties ? Typical example of such contracts are forwards and futures9. According to a large majority of scholars, this is not permissible on various grounds, the most important being the element of risk and uncertainty (gharar) and the possibility of speculation of a kind which is not permissible. This is discussed in section 3. However, another ground for rejecting such contracts may be riba prohibition. In the preceding paragraph we have discussed that bai salam in currencies with fluctuating exchange rates can not be used to earn riba because of the presence of currency risk. It is possible to demonstrate that currency risk can be hedged or reduced to zero with another forward contract transacted simultaneously. And once risk is eliminated, the gain clearly would be riba.
We modify and rewrite the same example: "In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, an individual purchases $50 at the rate of 1:22 (settlement of his obligation in rupees deferred to a future date), and the seller of dollars also hedges his position by entering into a forward contract to sell Rs1100 to be received on the future date at a rate of 1:20, then it is highly probable that he is , in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the 50 dollars purchased on credit at spot rate)" The seller of the dollars (lender) receives a predetermined return of ten percent when he converts Rs1100 received on the maturity date into 55 dollars (at an exchange rate of 1:20) for his investment of 50 dollars irrespective of the market rate of exchange prevailing on the date of maturity.
Another simple possible way to earn riba may even involve a spot transaction and a simultaneous forward transaction. For example, the individual in the above example purchases $50 on a spot basis at the rate of 1:20 and simultaneously enters into a forward contract with the same party to sell $50 at the rate of 1:21 after one month. In effect this implies that he is lending Rs1000 now to the seller of dollars for one month and earns an interest of Rs50 (he receives Rs1050 after one month. This is a typical buy-back or repo (repurchase) transaction so common in conventional banking.10
3. The Issue of Freedom from Gharar3.1 Defining Gharar
Gharar, unlike riba, does not have a consensus definition. In broad terms, it connotes risk and uncertainty. It is useful to view gharar as a continuum of risk and uncertainty wherein the extreme point of zero risk is the only point that is well-defined. Beyond this point, gharar becomes a variable and the gharar involved in a real life contract would lie somewhere on this continuum. Beyond a point on this continuum, risk and uncertainty or gharar becomes unacceptable11. Jurists have attempted to identify such situations involving forbidden gharar. A major factor that contributes to gharar is inadequate information (jahl) which increases uncertainty. This is when the terms of exchange, such as, price, objects of exchange, time of settlement etc. are not well-defined. Gharar is also defined in terms of settlement risk or the uncertainty surrounding delivery of the exchanged articles.
Islamic scholars have identified the conditions which make a contract uncertain to the extent that it is forbidden. Each party to the contract must be clear as to the quantity, specification, price, time, and place of delivery of the contract. A contract, say, to sell fish in the river involves uncertainty about the subject of exchange, about its delivery, and hence, not Islamically permissible. The need to eliminate any element of uncertainty inherent in a contract is underscored by a number of traditions.12
An outcome of excessive gharar or uncertainty is that it leads to the possibility of speculation of a variety which is forbidden. Speculation in its worst form, is gambling. The holy Quran and the traditions of the holy prophet explicitly prohibit gains made from games of chance which involve unearned income. The term used for gambling is maisir which literally means getting something too easily, getting a profit without working for it. Apart from pure games of chance, the holy prophet also forbade actions which generated unearned incomes without much productive efforts.13
Here it may be noted that the term speculation has different connotations. It always involves an attempt to predict the future outcome of an event. But the process may or may not be backed by collection, analysis and interpretation of relevant information. The former case is very much in conformity with Islamic rationality. An Islamic economic unit is required to assume risk after making a proper assessment of risk with the help of information. All business decisions involve speculation in this sense. It is only in the absence of information or under conditions of excessive gharar or uncertainty that speculation is akin to a game of chance and is reprehensible.
3.2 Gharar & Speculation with of Futures & Forwards
Considering the case of the basic exchange contracts highlighted in section 1, it may be noted that the third type of contract where settlement by both the parties is deferred to a future date is forbidden, according to a large majority of jurists on grounds of excessive gharar. Futures and forwards in currencies are examples of such contracts under which two parties become obliged to exchange currencies of two different countries at a known rate at the end of a known time period. For example, individuals A and B commit to exchange US dollars and Indian rupees at the rate of 1: 22 after one month. If the amount involved is $50 and A is the buyer of dollars then, the obligations of A and B are to make a payments of Rs1100 and $50 respectively at the end of one month. The contract is settled when both the parties honour their obligations on the future date.
Traditionally, an overwhelming majority of Sharia scholars have disapproved such contracts on several grounds. The prohibition applies to all such contracts where the obligations of both parties are deferred to a future date, including contracts involving exchange of currencies. An important objection is that such a contract involves sale of a non-existent object or of an object not in the possession of the seller. This objection is based on several traditions of the holy prophet.14 There is difference of opinion on whether the prohibition in the said traditions apply to foodstuffs, or perishable commodities or to all objects of sale. There is, however, a general agreement on the view that the efficient cause (illa) of the prohibition of sale of an object which the seller does not own or of sale prior to taking possession is gharar, or the possible failure to deliver the goods purchased.
Is this efficient cause (illa) present in an exchange involving future contracts in currencies of different countries ? In a market with full and free convertibility or no constraints on the supply of currencies, the probability of failure to deliver the same on the maturity date should be no cause for concern. Further, the standardized nature of futures contracts and transparent operating procedures on the organized futures markets15 is believed to minimize this probability. Some recent scholars have opined in the light of the above that futures, in general, should be permissible. According to them, the efficient cause (illa), that is, the probability of failure to deliver was quite relevant in a simple, primitive and unorganized market. It is no longer relevant in the organized futures markets of today16. Such contention, however, continues to be rejected by the majority of scholars. They underscore the fact that futures contracts almost never involve delivery by both parties. On the contrary, parties to the contract reverse the transaction and the contract is settled in price difference only. For example, in the above example, if the currency exchange rate changes to 1: 23 on the maturity date, the reverse transaction for individual A would mean selling $50 at the rate of 1:23 to individual B. This would imply A making a gain of Rs50 (the difference between Rs1150 and Rs1100). This is exactly what B would lose. It may so happen that the exchange rate would change to 1:21 in which case A would lose Rs50 which is what B would gain. This obviously is a zero-sum game in which the gain of one party is exactly equal to the loss of the other. This possibility of gains or losses (which theoretically can touch infinity) encourages economic units to speculate on the future direction of exchange rates. Since exchange rates fluctuate randomly, gains and losses are random too and the game is reduced to a game of chance. There is a vast body of literature on the forecastability of exchange rates and a large majority of empirical studies have provided supporting evidence on the futility of any attempt to make short-run predictions. Exchange rates are volatile and remain unpredictable at least for the large majority of market participants. Needless to say, any attempt to speculate in the hope of the theoretically infinite gains is, in all likelihood, a game of chance for such participants. While the gains, if they materialize, are in the nature of maisir or unearned gains, the possibility of equally massive losses do indicate a possibility of default by the loser and hence, gharar.
3.3. Risk Management in Volatile Markets
Hedging or risk reduction adds to planning and managerial efficiency. The economic justification of futures and forwards is in term of their role as a device for hedging. In the context of currency markets which are characterized by volatile rates, such contracts are believed to enable the parties to transfer and eliminate risk arising out of such fluctuations. For example, modifying the earlier example, assume that individual A is an exporter from India to US who has already sold some commodities to B, the US importer and anticipates a cashflow of $50 (which at the current market rate of 1:22 mean Rs 1100 to him) after one month. There is a possibility that US dollar may depreciate against Indian rupee during these one month, in which case A would realize less amount of rupees for his $50 ( if the new rate is 1:21, A would realize only Rs1050 ). Hence, A may enter into a forward or future contract to sell $50 at the rate of 1:21.5 at the end of one month (and thereby, realize Rs1075) with any counterparty which, in all probability, would have diametrically opposite expectations regarding future direction of exchange rates. In this case, A is able to hedge his position and at the same time, forgoes the opportunity of making a gain if his expectations do not materialize and US dollar appreciates against Indian rupee (say, to 1:23 which implies that he would have realized Rs1150, and not Rs1075 which he would realize now.) While hedging tools always improve planning and hence, performance, it should be noted that the intention of the contracting party - whether to hedge or to speculate, can never be ascertained.
It may be noted that hedging can also be accomplished with bai salam in currencies. As in the above example, exporter A anticipating a cash inflow of $50 after one month and expecting a depreciation of dollar may go for a salam sale of $50 (with his obligation to pay $50 deferred by one month.) Since he is expecting a dollar depreciation, he may agree to sell $50 at the rate of 1: 21.5. There would be an immediate cash inflow in Rs 1075 for him. The question may be, why should the counterparty pay him rupees now in lieu of a promise to be repaid in dollars after one month. As in the case of futures, the counterparty would do so for profit, if its expectations are diametrically opposite, that is, it expects dollar to appreciate. For example, if dollar appreciates to 1: 23 during the one month period, then it would receive Rs1150 for Rs 1075 it invested in the purchase of $50. Thus, while A is able to hedge its position, the counterparty is able to earn a profit on trading of currencies. The difference from the earlier scenario is that the counterparty would be more restrained in trading because of the investment required, and such trading is unlikely to take the shape of rampant speculation.
4. Summary & ConclusionCurrency markets of today are characterized by volatile exchange rates. This fact should be taken note of in any analysis of the three basic types of contracts in which the basis of distinction is the possibility of deferment of obligations to future. We have attempted an assessment of these forms of contracting in terms of the overwhelming need to eliminate any possibility of riba, minimize gharar, jahl and the possibility of speculation of a kind akin to games of chance. In a volatile market, the participants are exposed to currency risk and Islamic rationality requires that such risk should be minimized in the interest of efficiency if not reduced to zero.
It is obvious that spot settlement of the obligations of both parties would completely prohibit riba, and gharar, and minimize the possibility of speculation. However, this would also imply the absence of any technique of risk management and may involve some practical problems for the participants.
At the other extreme, if the obligations of both the parties are deferred to a future date, then such contracting, in all likelihood, would open up the possibility of infinite unearned gains and losses from what may be rightly termed for the majority of participants as games of chance. Of course, these would also enable the participants to manage risk through complete risk transfer to others and reduce risk to zero. It is this possibility of risk reduction to zero which may enable a participant to earn riba. Future is not a new form of contract. Rather the justification for proscribing it is new. If in a simple primitive economy, it was prevention of gharar relating to delivery of the exchanged article, in todays' complex financial system and organized exchanges, it is prevention of speculation of kind which is unIslamic and which is possible under excessive gharar involved in forecasting highly volatile exchange rates. Such speculation is not just a possibility, but a reality. The precise motive of an economic unit entering into a future contract - speculation or hedging may not ascertainable ( regulators may monitor end use, but such regulation may not be very practical, nor effective in a free market). Empirical evidence at a macro level, however, indicates the former to be the dominant motive.
The second type of contracting with deferment of obligations of one of the parties to a future date falls between the two extremes. While Sharia scholars have divergent views about its permissibility, our analysis reveals that there is no possibility of earning riba with this kind of contracting. The requirement of spot settlement of obligations of atleast one party imposes a natural curb on speculation, though the room for speculation is greater than under the first form of contracting. The requirement amounts to imposition of a hundred percent margin which, in all probability, would drive away the uninformed speculator from the market. This should force the speculator to be a little more sure of his expectations by being more informed. When speculation is based on information it is not only permissible, but desirable too. Bai salam would also enable the participants to manage risk. At the same time, the requirement of settlement from one end would dampen the tendency of many participants to seek a complete transfer of perceived risk and encourage them to make a realistic assessment of the actual risk. .
Notes & References1. These diverse views are reflected in the papers presented at the Fourth Fiqh Seminar organized by the Islamic Fiqh Academy, India in 1991 which were subsequently published in Majalla Fiqh Islami, part 4 by the Academy. The discussion on riba prohibition draws on these views.
2. Nabil Saleh, Unlawful gain and Legitimate Profit in Islamic Law, Graham and Trotman, London, 1992, p.16
3. Ibn Qudama, al-Mughni, vol.4, pp.5-9
4. Shams al Din al Sarakhsi, al-Mabsut, vol 14, pp 24-25
5. Paper presented by Abdul Azim Islahi at the Fourth Fiqh Seminar organized by Islamic Fiqh Academy, India in 1991.
6. Paper by Dr M N Siddiqui highlighting the issue was circulated among all leading Fiqh scholars by the Islamic Fiqh Academy, India for their views and was the main theme of deliberations during the session on Currency Exchange at the Fourth Fiqh Seminar held in 1991.
7. It is contended by some that the above example may be modified to show the possibility of riba with spot settlement too. "In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, if an individual purchases $50 at the rate of 1:22 (settlement of his obligation also on a spot basis), then it amounts to the seller of dollars exchanging $50 with $55 on a spot basis (Since, he can obtain Rs 1100 now, exchange them for $55 at spot rate of 1:20)" Thus, spot settlement can also be a clear source of riba. Does this imply that spot settlement should be proscribed too ? The fallacy in the above and earlier examples is that there is no single contract but multiple contracts of exchange occurring at different points in time (true even in the above case). Riba can be earned only when the spot rate of 1:20 is fixed during the time interval between the transactions. This assumption is, needless to say, unrealistic and if imposed artificially, perhaps unIslamic.
8. Islam envisages a free market where prices are determined by forces of demand and supply. There should be no interference in the price formation process even by the regulators. While price control and fixation is generally accepted as unIslamic, some scholars, such as, Ibn Taimiya do admit of its permissibility. However, such permissibility is subject to the condition that price fixation is intended to combat cases of market anomalies caused by impairing the conditions of free competition. If market conditions are normal, forces of demand and supply should be allowed a free play in determination of prices.
9. Some Islamic scholars use the term forward to connote a salam sale. However, we use this term in the conventional sense where the obligations of both parties are deferred to a future date and hence, are similar to futures in this sense. The latter however, are standardized contracts and are traded on an organized Futures Exchange while the former are specific to the requirements of the buyer and seller.
10. This is known as bai al inah which is considered forbidden by almost all scholars with the exception of Imam Shafii. Followers of the same school, such as Al Nawawi do not consider it Islamically permissible.
11. It should be noted that modern finance theories also distinguish between conditions of risk and uncertainty and assert that rational decision making is possible only under conditions of risk and not under conditions of uncertainty. Conditions of risk refer to a situation where it is possible with the help of available data to estimate all possible outcomes and their corresponding probabilities, or develop the ex-ante probability distribution. Under conditions of uncertainty, no such exercise is possible. The definition of gharar, Real-life situations, of course, fall somewhere in the continuum of risk and uncertainty.
12. The following traditions underscore the need to avoid contracts involving uncertainty.
Ibn Abbas reported that when Allah's prophet (pbuh) came to Medina, they were paying one and two years advance for fruits, so he said: "Those who pay in advance for any thing must do so for a specified weight and for a definite time".
It is reported on the authority of Ibn Umar that the Messenger of Allah (pbuh) forbade the transaction called habal al-habala whereby a man bought a she-camel which was to be the off-spring of a she-camel and which was still in its mother's womb.
13. According to a tradition reported by Abu Huraira, Allah's Messenger (pbuh) forbade a transaction determined by throwing stones, and the type which involves some uncertainty.
The form of gambling most popular to Arabs was gambling by casting lots by means of arrows, on the principle of lottery, for division of carcass of slaughtered animals. The carcass was divided into unequal parts and marked arrows were drawn from a bag. One received a large or small share depending on the mark on the arrow drawn. Obviously it was a pure game of chance.
14. The holy prophet is reported to have said " Do not sell what is not with you"
Ibn Abbas reported that the prophet said: "He who buys foodstuff should not sell it until he has taken possession of it." Ibn Abbas said: "I think it applies to all other things as well".
15. The Futures Exchange performs an important function of providing a guarantee for delivery by all parties to the contract. It serves as the counterparty in the exchange for both, that is, as the buyer for the sale and as the seller for the purchase.
16. M Hashim Kamali "Islamic Commercial Law: An Analysis of Futures", The American Journal of Islamic Social Sciences, vol.13, no.2, 1996
Send Your Comments to: Dr Mohammed Obaidullah, Xavier Institute of Management, Bhubaneswar 751 013, India Mail to: obeid@ximb.stpbh.soft.net Source: http://vlib.unitarklj1.edu.my/htm/islamforex.htm