A primer on how India's forex market works
Still not able to understand - if it dhaba trade - no hand is exchanged- how can Indian banks, seeing a gap between the two prices, started buying dollars cheaply in India and selling them at a higher price in the NDF market?
The principal amount is notional and the profit/loss generated is in dollars- this difference is pocketed by the participants in the trade.
https://neuradynamics.ai/services/generative-ai-consulting-services
Still not able to understand - if it dhaba trade - no hand is exchanged- how can Indian banks, seeing a gap between the two prices, started buying dollars cheaply in India and selling them at a higher price in the NDF market?
The principal amount is notional and the profit/loss generated is in dollars- this difference is pocketed by the participants in the trade.
https://neuradynamics.ai/services/generative-ai-consulting-services