Non-Deliverable Forwards (NDFs) Explained | CFA Level 3

In this video from the CFA Level 3 curriculum, we explore the mechanics of Non-Deliverable Forwards (NDFs). Non-Deliverable Forwards are OTC derivatives contracts that allow foreign investors to take a view on / hedge exposures to currencies that are not physically deliverable and cash settle the difference between an agreed rate and actual price (at maturity), with the settlement happening in the delivery currency of the chosen currency pair (typically USD).
For preparation resources related to FRM exam preparation, please browse over to the respective course pages:
1) FRM Part I: www.finRGB.com...
2) FRM Part II: www.finRGB.com...

[@suvigyanidhipandey8522]

thankyou for such a great explanation

[@surendrabarsode8959]

Well explained. If some trading/market related information about NDF is given, it will add to the further understanding of the concept. Also, why NDF for Indian rupee in Singapore is a huge market and it benefits/disadvantages for India?

[@guddu152]

Very well done

[@zome_craze9328]

Well explained

[@Goku-wr5te]

Sir,do you provide CFA L2 video lectures?

[@finRGB]

Hello SM. Currently no, but maybe in future :).

[@Goku-wr5te]

@@finRGB 🙌