ELI5: Explain Like I'm 5

Badla (stock trading)

Badla is like sharing your toys with your friends. In the stock market, badla happens when one person borrows stocks from another person and agrees to pay them back later. It's like borrowing a toy and promising to give it back when your friend asks for it.

But why would someone want to borrow stocks? Well, the person who borrows wants to sell those stocks to someone else and hopes to buy them back later at a cheaper price. It's like borrowing a toy and selling it to someone else, hoping to buy it back at a lower price before your friend asks for it back.

However, there's a catch. The person who borrowed the stocks has to pay interest to the person who lent them. It's like borrowing a toy and promising to pay your friend a candy every day until you give back the toy.

Overall, badla is a way for people to make money in the stock market by borrowing and selling stocks, but it also involves paying interest to the person who lent the stocks in the first place.