Glossary
Gharar
"Gharar" means "hazard" in Arabic. Gharar means uncertainty, contingency or ambiguity in a contract that is prohibited under the Sharia law. Gharar is defined as "the sale of what is not yet present" such as crops not yet harvested.
The idea of Gharar is to prevent fraud, injustice and the subsequent disagreement of the parties.
In finance, instruments involving extreme uncertainty are prohibited. For example, swaps, options, futures, short transactions on the stock market. At the same time, Sharia law prohibits extreme uncertainty, i. e. only those assets that pose the highest risk.
Therefore, a distinction is made between a nominal gharar and an excess gharar. For example, commercial insurance is a vital part of economic life.
Thus, transactions and contracts are deemed a gharar if there are excessive risks or uncertainty or one party benefits only from the other party’s losses.
Accordingly, Islamic finance also strictly prohibits interest-bearing loans, regarded as usury.
Find Any Data on Any Bond in Just One Click
Full data on over 800,000 bonds and stocks worldwide
Powerful bond screener
Ratings from the top 3 global ratings agencies, plus over 70 local ones
Over 300 pricing sources from the OTC market and world stock exchanges
Get access
×
— Are you looking for the complete & verified bond data?
— We have everything you need:
full data on over 700 000 bonds, stocks & ETFs;
powerful bond screener;
over 350 pricing sources among stock exchanges & OTC market;
ratings & financial reports;
user-friendly interface;
available anywhere via Website, Excel Add-in and Mobile app.
Register
×
Why 
You will have detailed descriptive & pricing data for 650K bonds, 76K stocks, 8K ETFs
Get full access to the platform from any device & via Cbonds app
Enhance your portfolio management with Cbonds Excel Add-in
Build yield maps, make chart comparison within a click
Don't wait any longer — start using Cbonds today!
Register