NDF: Non Deliverable Forward Swap – Back To School

downloadI don’t know how many of us, have actually heard about NDFs or know about this financial instruments and hence, we have picked up this topic for today`s detailed discussion. To start with, we will be explaining the meaning and definition of NDF, going on with market & currencies associated with NDFs. And, our closure for today`s post will be with the structure  & the various uses of NDFs.

Meaning: In finance, a non-deliverable forward (NDF) is an outright forward or futures contract in which counterparties settle the difference between the contracted NDF Continue reading “NDF: Non Deliverable Forward Swap – Back To School”

SWAPS : Foreign Currency Swaps (Back to school)

A swap can be defined as simultaneously purchase and sale of equivalent amount of base currency for 2 different maturities, essentially its a simultaneously borrowing and lending of 2 currencies between 2 banks for specific period express in the form of purchase and sell transactions. The interest rate differential payable or receivables by one of the parties is factored into exchange rates applied for the 2 components of transactions. Therefore the difference between Continue reading “SWAPS : Foreign Currency Swaps (Back to school)”

The Euro Currency Market – (Back to School)


Image used to convey the idea of currency conv...

Foreign exchange market operates where currencies are bought and sold, where as in Euro currency market currencies are deposited and borrowed.

The reason Foreign market operates on exchange rate and Euro currency market operates on interests rates.

1) The Euro currency market originated out of the need of investors Continue reading “The Euro Currency Market – (Back to School)”