Islamic way of Trading

[in_4_u_babess]

Hello Brothers & Sisters,
i wanted to find out the Islamic way of trading........
i mean there are several restrictions in Trading.... for ex you cannot buy shares of a BANK....... coz money is genrated through interest......
i have not yet entered the Share MArket....... but wud like to have this INformation

It would be very useful for me'
Thank you freinds...........

[pathakhiman]

Can you tell in detail The Islamic way of trding.Google

[in_4_u_babess]

if u r a muslim..........
there r various restriction in earning money
u cant take and give money on interest and many other things.....
so i have heard v cannot buy shares of banks.... because their main business is of interest........
plus i hear v cannot do future something...... i really dunno
thats wat i neede to kno

[halflifept]

Hi
Islamic finance is suffering from low profile in india becoz the basic principles clash with teh Banking regulation act of india. for eg. U cant deal in interest(or Riba) of any kind if u r wokin according to Shariah finance...but the Banking Reg act says that it is compulsory for anything named a "bank" to pay interest to people who have kept their deposits with the bank...right now, investors interested in this kind of investment can approach islamic investment services like halalinvestments and idafa.com etc....or u can do a research of your own amongst the mutual funds which invest in companies which comply with shariah law to some extent as compared to others....believe me...the first option is better plus practical!

The main funda behind Shariah finance is very logical..."any money earned just because of the fact that u r a mere possessor of money" is wrong (or haram...anything which doesnt follow shariah laws is termed haram ;else halal) ur earnings are justified only if they arise out of some "work" or trade or activity and stuff...so this makes sure that people earn if they work for it and money is put to a use which the investor finds righteous...
eg. in conventional finance, u giv loan to someone..u just check the credit worthiness n care a hell about where the money goes...might go into some trade which u dont think has good results on the society or whtever. but in islamic finance, the investor invests his money or provides 'loan' to a person only if he approves of the latter's project (u knw ...similar to venture capital)
this maintains a balance in the society as it avoids the rich getting richer and the poor getting poorer.
u can also refer to some great books published by john wiley...their islamic economics and finance books rock!

Cheers!