Saturday, January 8, 2011

Forward contracts and Bay Al Salam

Bay Al salam :

is the islamic version of future contracts, that been said ,both of them have their own properties that be similarities or differences.

Bay al salam

main difference between the Forward contracts and Bay al salam

full contract price is agreed upon and payed at purchase time


delivery in Both take place in the future.


Gold, silver and gems cannot be applied to those currencies backup with Gold.

the Selling should own the item that he intends to sell , and he might mortgage goods to the buyer to guarantee forfilling the contract.


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