Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...

In the realm of finance, gearing (or leverage) has both its advantages and disadvantages. As far as derivatives are concerned,...

A forward contract has no value at the time it is first entered into (i.e., its net present value is...

The gain attained or the loss incurred by the holder of a forward contract at delivery date. In general, the...

Derivatives have their own characteristics that distinguish them from their underlying assets or other forms of financial instruments. The key...

In general, leverage (or gearing) can be defined as borrowing funds to make investments. In the context of derivatives trading,...

An option contract is a derivative contract that grants its owner the right, without the obligation to buy (for a...

A process of terminating a swap by marking it to market and calculating its value in order to determine which...

On specific exchanges, investors are permitted to short stock they do not own. In so doing, an investor borrows stock...

Khiyar is an option that is given to one or both of the contracting parties or a third party to…