Arabic (بيع الوضيعة) for sale (bay’) with loss/ at loss. It is a type of sale in which the price (thaman) is less than cost price. In other words, the seller disposes of the object of sale for a much lesser price than acquisition price.

Bay’ al-wadhi’ah is a special type of bay’ al-amanah (بيع الأمانة/ بيوع الأمانة) because the seller is under obligation to reveal acquisition price to the purchaser. Hence, the actual discount is also well known, in advance, to the purchaser.