Non-Deliverable Forward (NDF) trading has been limited within the FX and CFD industry as we know it today.
Early in the last decade, a small number of FX brokerages started to offer NDF CFDs on a voice brokered basis only. However, today, there is hardly any streaming retail NDF liquidity within the industry.
Institutional NDF turnover within the last 12 years has seen a steady increase of some 300% in trading volume. Specifically, in the previous year, institutional NDF volumes have increased by a significant 43%.
The Bank for International Settlements research indicates the non-deliverable market activity is rising significantly, with volumes doubling in the last three years. Institutional investors have embraced NDFs so as to generate potential returns in the emerging markets.
NDFs allow traders and institutional clients to enter new investment potential through a developing market that permits trading in currencies like the Brazilian Real, Indian Rupee, and Korean Won. These are often referred to as Emerging Market Currencies.
Since institutional traders and banks continue to show interest within the NDF market our belief is that retail client demand is set to rise.
Identifying the market gap, Sheer Markets believes that NDFs are on the brink of significant evolution and development. Only a minimal number of financial brokers currently provide streaming live NDF CFD prices, and these products have largely been unavailable to online traders through MetaTrader 4 and MetaTrader 5.
Sheer Markets, a newly established financial institution that received a regulatory license from the Cyprus Securities and Exchange Commission (CySEC) late last year, have identified this gap in the Emerging Markets and has developed a suite of NDF CFD products to meet this demand.
Sheer Markets represent the driving force in an ever-evolving global industry by providing their clients with competitive and streaming access to a comprehensive instrument range, including NDFs, EMFX, and FX CFDs.
In addition, Sheer Markets offers additional CFD trading opportunities in cryptocurrencies, equities, indices, and commodities.
Investors are always on the lookout for new investment opportunities. One such opportunity is the expansion in liquidity and turnover within the NDF market. Sheer Markets will open up a whole new world of investment opportunities for retail traders.