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Applications of Istisna’a in Banking and Finance

Istisna’a provides an instrumental tool for financing of all types of assets that are not readily available with the seller...

Applications of Istisna’a

Istisna'a (الاستصناع) is a special kind of the contract of sale (ba'i) in which the underlying commodity is sold before...

Penalty for Default in Murabaha

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...

Types of Incorporated Waqf

Incorporated waqf is a type of waqf that has full incorporated status and is larger than a certain size in...

Advantages of VWAP

VWAP (volume-weighted average price) is the ratio of the value of securities traded to the total volume traded over a...

Calculation of Quoted Bid-Ask Spread

The quoted bid-ask spread is the difference between a market maker's (a dealer's) ask and bid price quotes at a...

Delay Cost Calculation

The delay cost results from the inability or lack of action to immediately complete the trade of buying or selling...

Types of Gharar

Gharar is an element of risk, uncertainty, or hazard that could render a contract void. A gharar-associated contract is one...

Difference Between Murabaha and Commodity Murabaha

Murabaha is a trading and financing mode involving the sale of goods (commodities) at cost plus a profit mark-up (ribh)...

Disadvantages of VWAP

VWAP (volume-weighted average price) is the ratio of the value of securities traded to the total volume traded over a...