An option that expires or pays off if the underlying hits or exceeds the outstrike price. For example, in the…

A type of ijarah which involves the sale of a clearly specified underlying asset, which is currently being produced or…

Alternative term for an out of the money option. Always from buyer’s perspective, it is an option whose underlying’s market…

With respect to debts, hawala refers to the transfer of debt from one party (the transferor, or muheel) to another…

A short sale against the box (SATB) of a stock  is a trade in which the seller actually owns the…

An essentially noncommutative contract that is used to secure a commutative contract (such as a sale contract/aqd al-ba’i) or obligations…

A forward contract which allows the holder to lock in today an exchange rate at a future date. With this…

An interest rate swap in which one leg is a fixed rate referenced to the UDI index (or the Unidades…

Arabic (فرض عين) for individual duty or obligation. It is an act that is compulsory for every competent Muslim (man…

A bond that pays interest only if the floating interest rate (such as LIBOR) or aninterest rate option underlying a…