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in this video weamp;#39;ll be talking about non-deliverable forwards ndfs an ntf can be thought of to be a cash settled bet on the exchange rate of a currency pair to understand how ndfs work letamp;#39;s take the example of a hypothetical emerging market currency letamp;#39;s label it as emc and letamp;#39;s assume that this emerging market currency it trades with some form of capital controls around it this implies that the local government of this emerging market has put in restrictions for the delivery of this currency practical examples of such emerging market currencies are number one indian rupee number two chinese yuan number three korean warn and number four brazilian real okay now in our example letamp;#39;s bring in a us-based investor this u.s based investor has his local or letamp;#39;s say accounting currency set to be usd and therefore the currency pair that we will be dealing with in this example is ust emc in this currency pair letamp;#39;s assume that usd is th