Non-Deliverable Forward

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Non-Deliverable Forward

A forward contract on a low-volume or inconvertible currency that cannot be settled by delivery of the underlying. In a non-deliverable forward, the parties net the difference between the exchange rate listed in the contract and the spot rate, and one party pays the other that difference. They are usually settled in U.S. dollars. Multinational corporations sometimes use non-deliverable forwards to hedge against risk associated with comparatively illiquid currencies.
References in periodicals archive ?
For example, exposures under the CRPP facility will not have NDF position limits.
At settlement, differences between the NDF price and prevailing spot price are paid out in the freely traded currency.
The nonsignificant effect of water-insoluble NDFs in our study is due to the very low amount of lignin present in water-insoluble NDFs isolated from S.
The Philippines is one of the few Asia Pacific countries that use NDFs, a short-term, cash-settled currency forward between two counterparties.
Indian rupee NDFs were pricing the rupee at 62.33 in a year's time, 5 percent weaker than the spot rate of 58.93.
No MFIs Average Score 1 SANGHAMITHRA 0.83 2 SHARE 0.80 3 SPANDANA 0.80 4 BFL 0.79 5 AML 0.78 6 SKS 0.74 7 KRUSHI 0.74 8 SKDRDP 0.73 9 AWS 0.70 10 SEWA 0.66 11 BSS 0.65 12 RASS 0.65 13 BASIX 0.64 14 KBSLAB 0.62 15 AMMACT 0.62 16 NDFS 0.61 17 SWAWS 0.61 18 SAADHANA 0.59 19 GK 0.59 20 MFI 0.55 21 SMSS 0.52 22 GV 0.48 23 BANDHAN 0.47 24 BISWA 0.46 25 CRESA 0.46 26 SCNL 0.43 27 MAHASEMAM 0.41 28 ESAF 0.38 29 CASHPOR 0.37 30 ADHIKAR 0.36 31 RGVN 0.34 32 KAS 0.31 33 BAZAARI 0.31 34 NEED 0.30 35 SU 0.30 36 NBJK 0.28 37 ASOMI 0.27 38 SONATA 0.25 39 ABCRDM 0.18 40 NIDAN 0.04 Figure.2.
One currency trader said rising concerns that the currency is headed toward a devaluation has dried up the trade in Egyptian non-deliverable forwards (NDFs).
Products in the pipeline at ADS Securities include Non-Deliverable Forwards (NDFs) and Contracts For Difference (CFDs).
Twelve-month non-deliverable pound forwards, or NDFs, which provide a guide to expectations, traded at 6.535 to the dollar, reflecting bets the currency will weaken 8.9 percent.
* For NDFs: target, stop-loss and current level (now) calculated on the basis of the remaining maturity.
Products in the pipeline include other agricultural commodities, NDFs, CFDs and other derivatives.
Non-deliverable forwards (NDFs) are an effective method to hedge against fluctuations in pegged currencies like the Chinese yuan.