Both words broma and chiste translate to the English word joke. What's the difference between these two Spanish words, and how do I know when to use each one?
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The main difference that comes to my mind is that chiste can be something witty that you tell, like a joke. For example, the "three guys walk into a bar..." thing.
While broma is a joke that you play on someone, such as putting a sign at the wrong place.
A broma inocente is a joke played on someone that makes the "victim" laugh together with the ones who did the joke, something light; while a broma pesada is a joke that went a little too far.
If we go worse than that, then we're talking about a burla.
Chiste is a relatively simple concept as explained in the other answers. The thing is that broma is a complex word that has many meanings:
You need many words in english to explain what broma really is: to make fun of, to mock, to kid around, to have fun.