Non-deliverable forwards (NDFs)

Saxo offers NDFs for 11 Asian and Latin American currencies that face restrictive capital controls and that are not accessible in the spot market from offshore investors.

NDFs are available for the following currencies:

Chinese Renminbi
(Onshore Yuan)
Indonesian Rupiah
Indian Rupee
South Korean Won
Philippine Peso
Taiwan Dollar
Brazilian Real
Chilean Peso
Colombian Peso
Peruvian Nuevo Sol


Order execution

NDFs are traded on an RFQ basis. All execution is phone based with the applicable Saxo Trading Desk.

Tenors are only available up to one year, with CNY only available up to three months

Prices to institutional clients are negotiable and dependent on volumes. Contact us to find out more.

Minimum trade size

Minimum trade size is USD 500,000 and a maximum Net Open Position per currency capped at notional USD 5 - 50m.

Margin policy

An initial 8% margin requirement for all currency pairs is stipulated.

Trading Conditions

A (Notional) principal amount, forward exchange rate and forward date are all agreed at the contract's inception. At maturity, the difference between the contracted forward rate and the fixing rate is settled in the convertible currency.

NDFs are cash-settled currency forwards which provide an offshore mechanism to hedge currencies which were previously considered "unhedgeable"; either due to emerging markets suffering from illiquidity or regulatory/settlement constraints.

Offer dates across NDFs vary, from 3 months to up to 1 year.

Net Open Position (NOP) Limits

  • USD 50m: Brazilian Real, Chinese Renminbi, Indian Rupee, South Korean Won, New Taiwanese Dollar
  • USD 30m: Chilean Peso
  • USD 10m: Indonesian Rupiah, Columbian Peso
  • USD 5m: Philippine Peso

Contract Rolls

NDF contracts are not automatically rolled – Clients would need to place a roll-over request at the latest 1 day prior to the Fixing date, or the position will be closed and settled.

Contract Fixing Calculations

  • BRL: Daily Average Ask price taken on PTAX and published at 1.15pm Sao Paulo Time
  • CLP: Chilean Central Bank Rates are published daily for operations settled in the prior business
  • CNY: Set at 9.15am before the Spot open at 9.30am. More or less a black box. Before was determined by PBOC itself based on a basket of currencies they have set. Now PBOC is doing a market survey with several onshore banks
  • COP: The Market Representative Exchange Rate (Tasa Representativa del Mercado) states the daily exchange rate in the colombian market. It corresponds to the arithmetic average of the average weighed bid and ask rates of interbank and transfer operations, completed by authorized market intermediaries
  • IDR: weighted average of USD/IDR spot transactions traded in the interbank market between 8.00am and 9.45am Jakarta time
  • INR: Average spot rate of a 15 min window given by RBI out of a 30-min window (11.00am to 11.30am Mumbai Time). Rate published at 1pm Mumbai Time
  • KRW: volume-weighted average of the rates applied in daily transactions between foreign exchange banks brokered through Seoul Money Brokerage Services. Fixing Rate is published at 3.30pm Seoul Time
  • PEN: Weighted average exchange rate for NDF's fixing rate calculation. It is calculated by Datatec and published for Superintendencia de Banca, Seguros y AFP Peru and the Central Reserve Bank of Peru.
  • PHP: Morning Weighted averaged of the prices traded in the spot market. Rate is available at 11.31am Daily and published on PDEX
  • TWD: Spot Rate traded at 11.00am Taipei Time