Carry forward trading

Trading where the settlement of trades is postponed on the stock exchange until a future settlement period involving payment of interest on the account. It refers to the trading in which the settlement is postponed to the next Acc. period on payment of contango charges [known as ‘vyaj badla’s] in which the buyer pays interest on borrowed funds or the backwardation charges [a.k.a ‘unda badla’s] in which the short seller pays a charge for borrowing securities.

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