The growth rate of a unit of invested funds (dollars, euros, yen, etc) over a specific period of time. It…

A derivative whose underlying asset is an energy product. Many energy products trade both over the counter and on exchanges…

An investment scheme that involves raising funds from different investors and using the collected money to take on an investment.…

According to the Hanbali school of thought (mazhab), monetization (or in Arabic “tawarruq“) is the process of purchasing a commodity…

In the context of private equity fund investments, limited partners contribute capital to funds that diversify globally, rather than confine…

A forward option in which the payout is measured as the difference between the forward rate (or the strike) set…

An investor who tries to uncover bargains in the securities of troubled companies. Stocks that trade at prices sufficiently lower…

English for al-wa’ad bil ba’i/ bai’/ bay’ (الوعد بالبيع). It is usually embedded in exchange-based contracts (uqud al-mua’wadhah) such as…

A synthetic structure that consists of a single tranche. It is simpler than a standard synthetic tranche and can be…

A swaption (swap option) that can be exercised anytime the holder finds favorable or suitable during the options life. Once…