Nondeliverable Forward Contracts (NDF)
Agreement regarding a position in a specified currency, a specified exchange rate, and a specified future settlement date, that does not result in delivery of currencies. Rather one party in the agreement makes a payment to the other party on the basis of the exchange rate at the future date.
Nearby TermsNoncurrent liability Nondeductible contribution Nondeliverable Forward Contracts (NDF) Non-Discretionary Proposal Nondiscretionary trust
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University