NDF's - Where??

[jamphi24]

Hi,
Anyone know where someone can trade NDF's for personal use?
Cheers

 

[MrGecko]

NDF's are settled in the domestic currency, yeah?

 

[jamphi24]

Hi,
They are yes. Specifically looking for a GBPBRL or USDBRL NDF

 

[MrGecko]

Well, forgive me if I miss the point, but couldn't you use CFD's and adjust them for convexity? I mean, if you aren't going to take delivery, don't you just want a "Delta One" position on the rate?

 

[MrGecko]

What I mean is; if you want an NDF, and so don't want to take delivery of the foreign currency, can't you replicate it with a CFD? The cash flows will be different (time and frequency of settlement) which is why I mentioned convexity, but other than that, dont both leave you with a position that is exposed to the relevant rate? So you could just take a CFD on the same notional principal....????

 

[MrGecko]

unless you want to trade multiple expiries, sort of the "term structure of Exchange rates"?

interested to learn about what you hope to do with 'em.

 

[MrGecko]

GJ, can you enlighten us as to the differences / characteristsics of NDF's that make them unique from the instruments we will all be familiar with? What makes them different from a good old fashioned spread bet, for example?

Or is is just that it isn't a currency (the BRL) that the retail market has easy access to, let alone the crosses (which is why you are talking about USDBRL and GBPUSD as a proxy for GBPBRL, yeah?)

 

[gooseman]

how do you hedge it then? just a USD vanilla trade?

 

[gooseman]

so it's a hedge or a punt then really. i guess he delta 1 traders are the big boys in those instruments then,

 

[gooseman]

cheers GJ-a goldmine as usual.

and agree wholeheartedly with final 2 statements