Murabaha is a type of trust-based sale (buyu al-amana) whereby acquisition of assets is financed on short or relatively long...
The key features differentiating between Islamic finance and conventional finance are summarized in the following table: Islamic Finance Conventional Finance...
Characteristically, derivatives have one advantage over stocks and bonds even though at higher price volatility (and hence higher risk). The...
A money market derivative is a short-term interest rate derivative used in money market trading and hedging. It allows market...
A swap rate is the market rate on the fixed-rate leg of a swap. This rate is paid by the...
A credit derivative is a tool designed to transfer credit risk between two parties: a credit risk seller and a...
Futures contracts are sometimes used to alter the beta of a portfolio which has been reduced to zero (in order...
The stated annual rate is the annual rate expressed in the contract of lending or borrowing. It is the contractual...
The major differences between the international financial reporting standards and Islamic finance standards (those issued by AAOIFI) can be summarized...
Murabaha is a sale-based transaction (a cost-plus sale) which involves the sale of goods/ assets for a price (thaman) consisting...