Murabaha Margin vs. Free Margin

 

Murabaha

Free Margin

Definition

An Islamic finance method where Sahm purchases stocks and sells them to the investor at a predetermined profit margin.

A conventional financing method that allows investors to borrow funds from Sahm based on their current portfolio value.

Suited For

Long-term traders

Short-term traders

Non-Sharia Stock

Non-tradable

Tradable

Require to Purchase Stocks

Yes

No

Payment

One Time

Monthly Fees

Commission Free

No

Yes

Validity

One Year

Risk

An excessive risk will trigger a margin call

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