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Non-Deliverable Forwards (NDFs) 

Swapskills Academy
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Non-Deliverable Forwards (NDFs) are used in many emerging markets, from Latin America to Asia. Any participant in the FX markets needs to know how they operate, which is shown in this brief video.
Any treasurer involved in cross-border trading needs too understand how NDFs can be used to hedge an exposure which can otherwise wipe out profit margins.
This also applies to portfolio management and asset managers hedging coupon and dividend flows.
Courses on Options as well as Foreign Exchange are available on swapskills.teachable.com.
Perfect for finance majors, bankers , accountants, treasurers and anyone who wants to enhance their career opportunities in the financial markets.
Simon Rogers has over 35 years experience in banking, mainly in the derivatives markets, and has trained all around the world to financial institutions, companies, regulators and Government agencies at all levels of experience.
Simon is an accredited trainer for the ACI Dealing Certificate (New Version), see www.acifma.com.
You will find free booklets on various financial and capital markets topics at www.swapskills.com.

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13 май 2021

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Комментарии : 25   
@shivapradhan1239
@shivapradhan1239 Месяц назад
This is very helpful, Thanks!
@tomliuyt
@tomliuyt Год назад
Appreciate the clear and concise explanation!
@Kekc_91
@Kekc_91 2 года назад
Brilliant explanation, thanks a lot!!!
@swapskillsacademy575
@swapskillsacademy575 2 года назад
Glad it helped
@manishnilesh
@manishnilesh Год назад
Thank you professor
@Bhuvan.kumar23
@Bhuvan.kumar23 10 месяцев назад
Awesome!! You made it easy to understand... Thank You !!!
@vergil62
@vergil62 9 месяцев назад
Glad it helped!
@rajibinus
@rajibinus 4 месяца назад
Very well explained.
@eliasortega5731
@eliasortega5731 2 года назад
well explained, thx
@luvluv1231
@luvluv1231 Год назад
Thanks, this helps
@mr.meticulous4741
@mr.meticulous4741 Год назад
Thank you for this useful video. I would like to know more about the fixing sources like WMR and BFIX and some example of the calculation with both sources please.
@diljeetsingh8624
@diljeetsingh8624 2 года назад
Very useful
@swapskillsacademy575
@swapskillsacademy575 2 года назад
Glad to hear that
@smudgepost
@smudgepost Год назад
Thanks for the explanation. To understand how this futures contract works, I'd like to understand why a bank would pay the difference without paying an option premium?
@swapskillsacademy575
@swapskillsacademy575 Год назад
This is not a futures contract with initial/variation/maintenance margins. Nor is it an option with premium and flexibility to exercise. It is a contract for difference.
@smudgepost
@smudgepost Год назад
@@swapskillsacademy575 Thank you. Explained that way makes a lot more sense.
@aerithsu
@aerithsu 27 дней назад
I think those foreign currency ( INR, IDR etc) most likely depreciated againts USD, in that sense the bank will profit most of the time
@user-or7ji5hv8y
@user-or7ji5hv8y 3 года назад
I wonder how the market determine where the NDF forward should trade at?
@swapskillsacademy575
@swapskillsacademy575 3 года назад
Whereas interest rates for deliverable currencies generate forward FX rates, NDFs use extra ingredients which make NDFs as much an art as a science! Extra factors involve political risk, liquidity as well as outright supply & demand. After alleged market manipulation, Dodd-Frank pushed for greater transparency around the NDF fix, requests for quote (RFQ) and a data repository to show who is doing what.
@king0vdarkness
@king0vdarkness 2 года назад
Where does the bank get this cash from, I guess their own investments or us?
@swapskillsacademy575
@swapskillsacademy575 2 года назад
Which cash are you referring to? You mean for the net settlement when the NDF fix is made (this is a contract for difference)? This would come from / be paid to their chosen cash account.
@king0vdarkness
@king0vdarkness 2 года назад
@@swapskillsacademy575 thank you, where does the cash account get the money from?
@alirafsan2105
@alirafsan2105 Год назад
Currency is not deliverable means what?? Pls let me know
@swapskillsacademy575
@swapskillsacademy575 Год назад
It means when there is a physical exchange of one amount of currency for another at a future point in time.
@alirafsan2105
@alirafsan2105 Год назад
@@swapskillsacademy575 thx..
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