[Economy Q] Wayda Bazaar or Futures market

[Economy Q] Wayda Bazaar or Futures market

Vinay asked

what is wayda bazaar?

 

Answer

waydaa / Wadaa = promise to buy something in future.

Waydaa bazaar= future (and options) market.

 

When you make an agreement with someone that you'll buy gold/potato or anything in x quantity at y price on z date in future. This is future contract.

Waydaa Bazaar is the place where brokers hang out to make and trade such future and options* contracts.

 

*Options means, with such agreement, you've the right to buy that 1000 kg potato at the pre-determined price Rs.150,000 in future, but not the obligation to buy it.

Means you can refuse to buy it later on, if you're not in mood or find someone who is selling the same thing at lower prices! But in that case you loose the premium money paid on that options contract.