NDF NDF-Non-deliverable forward, which means cash-settled forward, is a kind of futures that only calculates the price difference and does not deliver. Maybe you don't understand my explanation. Let's give an example:

At present, it is assumed that 1 USD is 1:8 against RMB, but I think RMB may appreciate to 1:7. I just want to make some money in the middle. I'm not interested in holding dollars or RMB. What should I do? I'm going to sell the dollar forward at 1:8. Suppose three months is the delivery date. All right, time's up. At that time, the RMB did appreciate, reaching 1:7. Obviously, you made money, right? If it is normal futures, it must be delivered. In other words, you must actually sell your contract party dollars. Of course, you can buy it locally and sell it to the contractor immediately. But for NDF, you don't have to do this. In fact, you don't need to deliver the goods, as long as both parties calculate the difference between you and the delivery date, and then settle in cash. In other words, if you earn more, people will give you more, otherwise you will lose. Pay people the money they lost. This thing is actually similar to gambling. For example, the two of us will bet on one thing, and now we have spent 100 yuan. I think it will go up to 200 yuan, and you think it will go down. Ok, I said, ok, I'll buy a 10 day delivery from you at 100 yuan. If it's NDF, I don't really need to buy it from you. Let's calculate how much I earned first. This time it's 100 yuan. You can pay me 100 yuan. But if it can be delivered, I can buy it from you at the price of 100 yuan. Although I can sell it at the market price in 200 yuan at once, it's the same.

Having said so much, I don't know if you understand. If you don't understand, you can look it up online or ask some related questions.