Arbitrage
Arbitrage refers to the purchase of a security in one market and its sale in another market, aiming to benefit from the price difference between the two markets to generate profits without exposure to risk. These transactions are typically executed between the futures market and the spot market.
Murabaha/Review for the Purchase Orderer
A sales contract whereby the institution sells an item at cost plus an agreed-upon profit margin to the client, and the murabaha contract may be preceded by a promise from the client to purchase.
Blog
Contains several specialized articles on financial knowledge.
Risk
Risk is defined as the fluctuation in returns and profits, which may include losses. Investments carry varying degrees of risk, and generally, the higher the levels of risk, the greater the potential for higher returns. An individual’s risk tolerance determines the level of risk they are willing to undertake, considering their investment objectives and the […]
Systemic Risks
Risks arising from an institution’s inability to meet its obligations upon maturity, which consequently leads to the inability of that institution or other entities to fulfill their commitments, thereby causing a chain of adverse reactions and impacts on the market and transactions.
Operational risks
Operational risks – the risk of loss due to typographical errors, weak institutional performance, or due to delays, fraud, the unavailability of the system used, or those arising from the performance of financial and information service providers, or other similar events
Legal Risks
These involve exposure to legal claims that may result in losses due to legal demands.
Political Risks
These are government actions other than regulations and laws.
Regulatory Risks
These are regulations that impose costs or restrict activities.
Operational risks
These include human error, incorrect processes, business interruption, and information technology security (cyber risks).