Stock Market
Imagine you are a vegetable vendor in your local mandi. Onion prices are running irrationally high. You don't wanna miss the opportunity. But you've already sold out all your onions that day. So, you make an arrangement… you borrow some onions from your neighbouring vendor and assure him to return a few more onions than what you borrowed after a few days. Then, you sell these onions now at the prevailing high price. And once the price of onions drops, you buy them, then you return the borrowed onions and make profits from the excess sale proceeds. Simple, isn't it?
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about 3 years ago