FINSAI TRADE LTD

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Non-Deliverable Forward (NDF)

Non-Deliverable Forward (NDF)

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A cash-settled, short-term forward contract in a thinly traded or non-convertible foreign currency against a freely traded currency, where the profit or loss at the settlement date is calculated by taking the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds.