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Quoted Bid-Ask Spread Formula

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

Types of Waqf

Waqf is the process of making a property inalienable to its owner while confining its yield and usufruct (manfa'ah) to...

Effective Bid-Ask Spread Formula

The effective bid-ask spread is the difference between the price at which a dealer (or a market maker) buys (sells)...

Call Market vs. Continuous Market

Markets follow different trading systems depending on a number of criteria/ classifications. One classification differentiates between two types of markets...

Cost of Carry

Cost of carry is a measure of the relationship between futures prices and spot prices. This cost consists of the...

Asset Allocation with Swaps

Swaps can be used to allocate assets within a fund/ portfolio while maintaining its actual composition of equity or fixed...

Difference Between Conventional Leasing and Islamic Leasing (Ijarah)

A conventional lease is a commutative contract between a lessor and lessee whereby an asset (property) is placed at the...

Marking a Swap to Market

A swap can be marked to market when its settlement takes place by periodically readjusting its payments to market rates....

Differences Between Mudaraba and Musharaka

Mudaraba is a partnership in profit in which one partner provides capital (rab al-mal) and the other provides labor and...

Differences Between Profit Equalization Reserve and Investment Risk Reserve

The profit equalization reserve (PER) is the amount appropriated by an Islamic bank or financial institution out of the mudaraba...