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Trade NDF's With IKON

What is an NDF?

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.

Why do people trade them?

NDFs are prevalent in some countries where forward FX trading has been banned by the government (usually as a means to prevent exchange rate volatility).

Is Leverage Still Available?

High Leverage is available when trading NDF's (20:1 Leverage).

This means that with a US$ 1,000 deposit you can open a position of US$ 20,000.

Which Platform do I trade NDF's on?

NDF Trading is available to trade on our own fully integrated Trading Platform - IKON Prodigy - and recently one of the best Forex trading platforms in the world - Meta Trader 4.

IKON Prodigy has many other advantages:

  • NDF's Streaming Prices in some pairs (USD/INR)
  • NDF RFQ Available in other pairs
  • No Commission Charges when trading NDF's (or any other product on IKON Prodigy) except the bid/offer spread you see
  • Streaming Bullion – Gold and Silver
  • Streaming FX Options (17 Currency Pairs)
  • Spot FX – 45 Pairs
  • RFQ Options for non-standard dates
  • Full Market Depth / Immense Liquidity
  • Advanced Charting
  • API Trading
  • VPS
  • Single Integrated Trading GUI

What NDF currency pairs are available to trade with IKON?

Below details the full list of NDFs you can trade on IKON Prodigy and Meta Trader 4:

  • Indian Rupee - USD/INR
  • Russian Ruble - USD/RUB
  • Columbian Peso - USD/COP
  • Malaysian Ringgit - USD/MYR
  • Chinese Yuan - USD/CNY
  • South Korean Won - USD/KRW
  • Taiwan Dollar- USD/TWD

Meta Trader 4:

  • Indian Rupee - USD/INR

We only accept market orders when trading NDF's.

The minimum trade size if 10,000 notional value and the maximum 5,000,000 notional value on Prodigy.

The minimum trade size if 10,000 notional value and the maximum 5,000,000 notional value on Meta Trader 4.

The NDF market is an over the counter (OTC) market and trades using the following standard terms / conventions. Here are some common trading terms in relation to NDF's:

The Notional Amount

This is the "face value" of the NDF, which is agreed between the two counterparties. It should again be noted that there is never any intention to exchange the notional amounts in the two currencies.

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 Delivery) Date

This is the day 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.

The Contracted NDF Rate

This is the rate agreed between the two counterparties on the transaction date, and is essentially the outright forward rate of the currencies dealt.

The Prevailing Spot Rate

The fixing spot rate on the fixing date is usually provided by the central bank, and is commonly calculated by calling a number of dealers in the market for a quote at a specified time of day, and taking the average. The exact method of determining the fixing rate will be agreed when a trade is initiated, but most NDF markets have their own conventions.

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Risk Warning:Trading spot forex, options, and commodities is risky and not suitable for everyone. All of these products are leveraged, and you can lose more than your initial deposit. Don't trade more than you can afford to lose. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved. View our full risk warning here.