Is it permissible to agree to purchase iron at today's price, on condition that it be delivered at the same price if it rises, and at a lower price if it falls?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The transaction described is a salam contract, but it contains two prohibitions: ignorance of the term, and linking the capital of the salam to a decrease in the price of iron. Therefore, the transaction is invalid and must be annulled. To rectify it, a known term for the subject of the salam must be specified, and the capital should not be linked to the price of iron when the term is due; rather, the price must be determined from now.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/94447
Where this answer came from
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- Ftawy
- Original fatwa ID
- 94447
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy