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Reverse Sale and Buy-Back

A form of sale and buy-back (inah sale– بيع العينة) in which a commodity is sold for a spot price (thaman)…

Futures Short

The trader who takes a short position in futures, i.e., he/she will sell the underlying commodity of a futures contract,…

Futures Long

The trader who takes a long position in futures, i.e., he/she will buy the underlying commodity of a futures contract,…

Buying Forward

An investment strategy that involves the buying of shares, commodities, money market instruments or currencies in expectation of a price…

Buy Forward

An investment strategy that involves the buying of shares, commodities, money market instruments or currencies in expectation of a price…

Call Option Premium

The up-front price a call option buyer (long) pays to a call option seller (short) against the right to exercise…

Accepted Bill

A bill of exchange which is drawn on or by a bank, payable at some preset future date, to securitize…

Syndicated Murabaha

A murabaha contract between a purchaser and an investment agent (wakil bil istithmar) acting as mudarib or investment agent on…

Invisible Supply

Uncounted stocks of a given commodity which are held in the hands of wholesalers, manufacturers, and producers, but cannot be...

BERN

It stands for buffered enhanced return note; a structured note that offers an enhanced return (upside participation) depending on the…