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FORWARD TRADING


A trading system in certain shares (as allowed by the SEBI in India) in which buyers and sellers are allowed to postpone/defer payment and delivery respectively after paying some charges. If the buyer wants deferment, it is known as badla (an Indian term for contango) and if the seller goes for deferment of delivery of shares, it is known as undha badla (in India, elsewhere it is known as backwardation).