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Non-deliverable forward

Also written NDF · Non-deliverable forward (NDF)

A cash-settled, usually short-term currency forward contract in which the notional amount is never exchanged.

This one is not written up yet

The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.

Where this is taught

Free preparation for NISM Series I

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