NDF Trading

A Non-deliverable forward (NDF) is an outright forward contract in which counterparties settle the difference between the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount.

NDFs are mostly offered in countries where FX trading is controlled and managed by the Government, usually through the Central Bank (as a means to prevent currency rate volatility).

IKON offers NDF’s including, but not limited to, the Indian Rupee, Brazilian Real, Russian Ruble, Chinese Yuan, Malaysian Ringgit, Vietnamese Dong, and Colombian Peso which are available on the IKON Prodigy Platform and IKON’s MT4 Platforms.

Contract Features

  • The Notional Amount: This is the "face value" of the NDF, which is agreed between the two counterparties.
  • The Fixing Date: This is the day and time whereby the comparison between the NDF rate and the prevailing spot rate is made.
  • The Settlement (or Value) Date: The value day is when the difference is paid or received. Depending on the currencies dealt, the fixing date is one or two good business days before the settlement date.
  • IKON offers liquidity for the following three months end value dates, which is determined by the Exchange or Central Bank which determines the price of the NDF such as the DGCX.

Specifications

  • Contract Size: 100,000
  • Margin: 1000 USD on 1:100*
  • Execution Type: Market Order (Pending Order Not Applicable)
  • Trading hours are from 5 p.m. EST Sunday, until 5 p.m. EST Friday with no exception other than the official holidays when local markets are closed.
  • There are no transactional commission costs other than the bid and ask price.
  • The minimum lot size is 1,000 notional (0.01 lots) for NDFs while the maximum amount is 1m Notional (10 lots).
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Spreads

Instrument Prodigy MetaTrader4
USDINR 2-5 4-7
USDRUB 2-3 4-5
USDMYR 5-7 7-9
USDTWD 3-4 5-6
USDCNY 10 12

*Additional instruments can be added upon request. Note that NDF spreads are not the same as major parities and may vary depending on volatility and liquidity.

IKONFX.spain.NDF

IB Registration

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