How Does an NDF Differ from a Standard FX Forward Contract? ▴ Learn

How Does an NDF Differ from a Standard FX Forward Contract?

A standard FX forward contract involves the physical exchange of the two currencies at the agreed-upon rate on the settlement date. An NDF, however, is cash-settled, meaning only the net difference between the NDF rate and the official fixing rate is exchanged in a convertible currency.

What Is the Primary Difference between a Cash-Settled and a Physically-Settled Futures Contract?

How Does the Settlement Process Differ between Physically-Settled and Cash-Settled Derivatives?

How Does the Settlement Process Differ between Cash-Settled and Physically-Settled Futures?

What Is the Primary Difference between Physical and Cash Settlement in Derivatives?