[Avodah] Currency Trading and Ribis

[Zev Sero]

Harvey Benton wrote:

> If currencies CAN be considered as commodities, are there restrictions
> as to how much one can earn, buying or selling commodities?

The only restrictions halacha imposes on profit from selling commodities
are on food.  On basic food items one must not make more than 20% profit,
*after* all expenses and fair compensation for ones labour.  On luxury
food items, or those that are particularly onerous to obtain, one may
make 100% profit, again after paying oneself a salary and all expenses.
But all of these restrictions only apply if the market wholesale price
for the underlying good has remained the same; we are talking only about
how much a retailer may mark up the price (obviously in a situation
where he has limited competition, and therefore is able to take at least
some monopoly rent).  If the market price for the commodity has risen,
then one may charge that price, no matter how much profit this yields.


-- 
Zev Sero                      The trouble with socialism is that you
zev at sero.name                 eventually run out of other people’s money
                                                     - Margaret Thatcher