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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