Islamic Finance
Bay al-Mulamasah
May 25, 2021
Derivatives
Commodity Price Risk
May 26, 2021

A forward contract that grants the seller the option to defer delivery to a specific date in the future rather than make delivery at a date when the trade is not in his interest. Spot deferred contracts are often used to hedge future price exposure especially in gold markets.

It is also known as an undated forward.

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