Bai‘ al-sikak

Definition of "Bai‘ al-sikak"

Lit: Sale through documents. Tech: To buy certain goods without taking possession except through transferring of papers of entitlement. This was common in the early days of Islam and is also prevalent in the modern times in future markets. Sale deals are concluded without physical possession of goods from one party to the other, from second to third, from third to fourth and so on. At each stage margins are added or subtracted without adding any utility to the products. They are all covered under bai‘ al-sikak. Similarly, selling only licences and permits issued by the government is also covered by this.