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

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

A type of commercial paper that constitutes a certificate whereby the issuer promises to pay a specific amount of money…

An option that gives its holder the right, without the obligation, to enter into a forward swap at a given maturity/expiration…

A type of musharaka sukuk that represent certificates of equal value (sukuk) issued for the purpose of investing the funds…

A limit on speculative positions in options on futures contracts. The futures-equivalent of an option position is the number of…

Flexible options, or FLEX options, that are offered on equities and equity indices with nonstandard terms. Such nonstandard terms usually…

A charge that an Islamic bank makes against earnings. In other words, it is a contra-asset that is created by…

It stands for “forward implied volatility“. The future levels of volatility calculated taking into account current market prices of options.…

A contract (aqd) which exists by itself and is not subordinate or auxiliary to another contract (i.e., an accessory contract).…