Voci Flashcards
1
Q
Riba
A
Interest (prohibited)
2
Q
Gharar
A
Uncertainty: both parties should have complete information
3
Q
Maysir and Qimar
A
Gambling: acquisition by chance (maysir) and qimar: game gambling
4
Q
Bullish
A
Expectation of RISE in the price of the underlying
5
Q
Bearish
A
Expectation of FALL in the price of underlying
6
Q
Hedge
A
Insurance
7
Q
Long
A
Purchasing
8
Q
Short
A
Selling
9
Q
Flat/ square
A
Having no position»no exposure to price changes
10
Q
Leverage
A
Using borrowed funds to make investments
11
Q
To be long
A
Generate positive reuturns if prices rise
12
Q
To be short
A
Generate positive returns when prices fall
13
Q
Systematic risk
A
Market risk = Non-diversifiable risk
14
Q
Unsystematic risk
A
Specific risk = Diversifiable risk
15
Q
Beta
A
Measures systematic = market risk of a security
