By applying the following principles, we can determine whether a transaction involves Ribā or not:

PRINCIPLE 1: إذا بيع الربوي بجنسه، اشترط فيه شرطان: التقابض والتماثل. If a ribawi item is sold for its own kind, two conditions must be met: 1. Immediate Exchange (التقابض): Both parties must take possession of their respective items during the transaction session before parting. 2. Equal Measure (التماثل): The exchanged items must be equal according to the Shari'ah standards (i.e., weight for weight or volume measure for volume measure). NOTE: Knowledge of Equality When Selling Ribawi Items of the Same Kind; There are three cases: 1. العلم بالتماثل = يجوز البيع باتفاق Knowledge of equality: The sale is permissible by consensus. 2. العلم بالتفاضل = لا يجوز البيع باتفاق Knowledge of disparity: The sale is impermissible by consensus. 3. الجهل بالتماثل = حكمه كالعلم بالتفاضل Ignorance of equality: Its ruling is the same as knowledge of disparity. Memorise this rule: «الجهل بالتماثل كالعلم بالتفاضل» Ignorance of equality is equivalent to knowledge of disparity. PRINCIPLE 2: إذا بيع الربوي بربوي من غير جنسه في نفس المجموعة، فيشترط فـيـه شـرط واحد، هو التقابض. If a ribawi item is sold for another type of ribawi item from the same group, only one condition applies: 1. Immediate Exchange (التقابض): Both parties must take possession before parting. Equal measure (التماثل) is not a condition. PRINCIPLE 3: إذا بيع الربوي بربوي من المجموعة الأخرى، جاز التفاضل والتفرق قبل القبض. If a ribawi item is sold for another ribawi from a different category of Ribawi goods, disparity in quantity and deferred possession are both permissible. PRINCIPLE 4: إذا بيع الربوي بغير ربوي جاز التفاضل والتفرق قبل القبض. If a ribawi item is sold for a non-ribawi item, disparity in quantity and deferred possession are both permissible. Seven Examples and Their Rulings: EXAMPLE 1: A person sells 100 grams of gold for 100 grams of gold to be delivered after one month. RULING: This is prohibited and constitutes Ribā because both parties did not take possession of the exchanged items during the transaction session. EXAMPLE 2: A person buys 1 kilogram of barley for 1 kilogram of wheat RULING: This transaction is permissible due to the difference in kind (جنس), but immediate exchange (taking possession) during the session is required. Example 3: A person sells 50 kilograms of wheat for a sheep RULING: This transaction is permissible without any restrictions, whether the exchange happens during the session or not. Example 4: A person sells $100 for $110 RULING: This is not permissible. Example 5: A person borrows $1,000 on the condition of repaying $1,200 after a month RULING: This is not permissible. EXAMPLE 6: A person sells 100 silver dirhams for 10 gold coins, with payment deferred for one year RULING: This is not permissible. Immediate exchange (hand to hand) is mandatory in such transactions. EXAMPLE 7: A person buys shares in Ribā-based banks RULING: It is not permissible as this constitutes a form of exchanging currency without equality or immediate exchange. ______ Source: T.me/masjidsahabah https://whatsapp.com/channel/0029VadAK4n5K3zclcMjeg0F