Contango

Contango Also known as ‘seedha badla’ in Indian Stock Exchange. When a BULL buys in the anticipation of an immediate rise in price, but finds at the end of the accounting period that the price has not risen, he may either pay for the shares and take delivery, or he may carry over his transaction to the next accounting period by paying carry very charges or ‘seedha badlka’ to the seller. This ‘badla’ is financed by the BADLIWALLA.

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