Gharar is variously defined in English as 'uncertainty' or 'deceptive risk' - "that which has a pleasant appearance and a hated essence".
A gharar transaction occurs where one party can only benefit by the other's loss, under conditions of uncertainty.
Commercial insurance is given as an example of this, since either the insured pays a premium and receives no countervalue, or the insurer pays out much more on a claim than was received by way of premium.
In finance, gharar is observed within derivative transactions, such as forwards, futures and options, in short selling, and in speculation.
released April 28, 2016
MARKET DOMINANCE / MOTIVATIONAL NOISE: لمعان شيطان
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