: Provided liquidity by allowing financiers to lend money and stock owners to lend shares for a fee.
Badla system was an indigenous carry-forward mechanism used in Indian stock exchanges (primarily the Bombay Stock Exchange (BSE) index of badla
Badla rates are not fixed; they fluctuate based on demand. A sudden spike in rates can eat into your profits or turn a winning trade into a losing one. : Provided liquidity by allowing financiers to lend
Example (simple):
[ R_i = \fracC_iN_i \times P_i \times \frac365D ] Where: index of badla