What Is Parallel Salam

A Salam contract whereby al-muslam ileihi depends, for executing his obligation, on receiving what is due to him — in his capacity as al-muslam — from a sale in a previous Salam contract, without making the execution of the second Salam contract dependent on the execution of the first one.

What is Salam method of trading?

Salam contract refers to a sale of deferred goods with advance payment and is typically used for financing agricultural products. … In recent years, corresponding with the development of Islamic capital market in Muslims countries, there have been debates on whether share can be traded using Salam contract.

What is Salam agreement?

Refers to the purchase of a commodity for deferred delivery in exchange for immediate payment. Thus, in a Salam contract, the price is paid in full and in advance while the commodity is deferred to an agreed date in the future. This type of contract might be used where the commodity price is subject to change.