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Ba’i Bithaman Ajil

Arabic (بيع بثمن آجل) for a contract of sale (ba’i) in which goods are sold on a deferred payment basis.…

Ba’i Al-Mukhasarah

A contract of sale in which the seller reveals (or is under obligation to reveal) to the buyer his actual…

Bargaining Sale

In Islamic finance, it refers to the selling of a commodity at an agreed upon price irrespective of the original…

Ba’i Al-Ghayib

A type of sale (ba’i) in which the object of sale is not available at the contracting session (majlis al-aqd)…

Extendable Bond

A long-term debt security which has an embedded option to extend its maturity beyond the original maturity date. The bond…

Payout

The value of an option at expiration date, i.e., the value which is received by a holder from exercising an…

Employee Stock Option

An incentive plan which aims to motivate employees by conferring on the best performers the right to purchase the company’s…

Ratio Bull Spread

An option trading strategy that is executed by selling a number of out of the money call options exceeding the…

Purchase with Instant Resale

Originally known as eina in Arabic, it is a transaction whereby a person buys an asset/ commodity from a seller…

Roll Up

An option-related strategy that is based on the replacement of a position by closing out one option at a given…