Ded FKLI, "...a real con game", one of the traders was commenting to me...

Fcpo 1 min

Usdmyr

Fcpo breakout on these timeframes....

So confirmation of how the NDF non deliverable forward market is a fake cartel used to afrficially move prices quickly to influence. Sentiment.

Fines too low. Should be aud250 million each...

Something to be ashamed of, or are they proud of it?

Highest was 1636, briefly....

FKLI futures 15 min, on the uptrend...

USDMYR.... Still weak

A fellow trader asked me this lunchtime. "Ho ah? Capital controls? I heard the ringgit to exchange for US Dollars cannot already lah at the bank"

This is the sort of uneducated rumour mongering going on by uninformed nincompoop traders... According to my source in the banking circle, the spot USDMYR market is 'back to normal' not. The level is higher now, reflecting the supply and demand of buyers/sellers....

A non deliverable forward foreign exchange contract is described by Wikipaedia as such:

"An NDF is a short-term, cash-settled currency forward between two counterparties. On the contracted settlement date, the profit or loss is adjusted between the two counterparties based on the difference between the contracted NDF rate and the prevailing spot FX rates on an agreed notional amount.

The features of an NDF include:

• notional amount: This is the "face value" of the NDF, which is agreed between the two counterparties. It should again be noted that there is never any intention to exchange the notional amounts in the two currencies
• fixing date: This is the day and time whereby the comparison between the NDF rate and the prevailing spot rate is made.
• settlement date (or delivery date): This is the day when the difference is paid or received. It is usually one or two business days after the fixing date.
• contracted NDF rate: the rate agreed on the transaction date, and is essentially the outright forward rate of the currencies dealt.
• prevailing spot rate (or fixing spot rate): the rate on the fixing date usually provided by the central bank, and commonly calculated by calling a number of dealers in the market for a quote at a specified time of day, and taking the average. The exact method of determining the fixing rate is agreed when a trade is initiated.

Because an NDF is a cash-settled instrument, the notional amount is never exchanged. The only exchange of cash flows is the differencebetween the NDF rate and the prevailing spot market rate—that is determined on the fixing date and exchanged on the settlement date—applied to the notional, i.e. cash flow = (NDF rate – spot rate) × notional.

Consequently, since NDF is a "non-cash", off-balance-sheet item and since the principal sums do not move, NDF bears much lower counter-party risk. NDFs are committed short-term instruments; both counterparties are committed and are obliged to honor the deal. Nevertheless, either counterparty can cancel an existing contract by entering into another offsetting deal at the prevailing rate" 

So there is no underlying real currency being exchanged. Bottom line is a fake market for market participants to collude and manipulate the spot fx rate by influencing sentiment. 

15 min fcpo, uptrend resumes...

Fcpo 15 m into uptrend

The NDF market, as the fake market comes back to the real spot usdmyr market...

Usdmyr v 1 month ndf

Usdmyr. Onshore spot vs non deliverable forward, which is the 'true' rate.

Well, since the spit is based on an actual currency asset, the Ringgit it is derived based on BNM fix, to facilitate actual physical need to match buyers and sellers, transacting for business; this is the better gauge of value.

NDFs are just a tool for speculators, basically a tool for evil speculators to influence se. Timent. Just bullcrap....

ES futures, continues on recovery 'News Reversal' setup....

Affin, a good candidate for book closure move up?

A News Revetsal setup, S&P500 futures....

Fcpo

FCPO, resuming uptrend?

FKLI going sideways...

The Donald Trump effect.....

Usdmyr breaks 4.2

Classic day after trend day....

Nice uptrends in fcpo and fkli today....

The roller coaster of the US Presidential Election 2016....

Pricing in a Hillary Clinton victory....

Bigger picture for the FKLI futures 15 min...