Investments glossary


Gharar is an Arabic word that is associated with uncertainty, deception, and risk. It has been described as the sale of what is not yet present, such as crops not yet harvested or fish not yet netted. Gharar is a significant concept in Islamic finance and is used to measure the legitimacy of a risky investment pertaining to short selling, gambling, the selling of goods or assets of uncertain quality, or to any contract that is not drawn out in clear terms.

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