Legal Specificity of Futures Contracts in Jordanian Legislation: An Analytical Comparative Study

This study examines the legal and economic characteristics of future contracts by distinguishing them from ordinary contracts and clarifying the legal perspective on the probabilistic nature of cash-settled future contracts. This probabilistic aspect renders them, similar to contracts of uncertainty (gharar) especially illegal gambling and betting contracts. The study demonstrates that futures contracts possess a unique legal characteristic that sets them apart from both ordinary contracts in general, and contracts of uncertainty such as gambling and betting in particular. The study concludes that futures contracts are securities traded on financial markets financial. As such, they are object to specific legal regulation and serve various purposes for instance acting as; instruments for financial investment and speculation on price fluctuations, and risk management tools against price fluctuations. This multifaceted role underpins the distinct legal character attributed to futures contracts.