Non-deliverable Forward Contracts

This tutorial explains the concepts of currency non-deliverable forward contracts or NDFs

Comments

1. Wonderful, thank you!
2. This is excellent. Thank you for the explanation.
3. Good job
4. thank you
   from INDIA
5. Finally an explanation. Thank you.
6. Thank you for a very clear explanation
7. Good explanation.
8. Very clear and easy to understand explanation of NDF. I understood clearly. Thank You. 
9. Thank you so much. very clear. i m doing risk management recently. great for me to catch up the concept of NDF
10. Thank you so much, was really helpful to understand NDF...
11. An outright forward contract is generally for a single exchange of cash flows over a shorter period of time. A swap contract involves a series of cash flows over a longer period of time. Thus, a currency swap contract may be regarded as a package of multiple forward contracts. The mechanics of currency swap contracts are different as well. These contracts can be made between two parties with opposing needs. Watch video number IC5N_Dq9LEM (Title: Currency Swaps with a Numerical Example)
12. I want to know how is outright forward contract different form swap?
13. Unlike an outright forward contract, you do not deliver one currency and receive another. Instead, only the gain/ loss changes hands and is cash-settled (primarily in U.S. dollars). Therefore, these contracts are referred to as non-deliverable forward contracts.
14. I get the concept fine but why is called ' non deliverable' ?
15. thanks
16. Thank You, It was really helpful. I have a small presentation on NDF tomorrow.