A TRF is a foreign exchange derivative instrument which allows the buyer to buy or sell a currency for multiple expiries at a more favourable rate as compared to a strip of vanilla FX forwards. In this structure, the client’s gains are capped, and if the total gain reaches the target amount, the structure knocks out. The TRF can have additional features such as leverage and knock in, and the strike rate changes accordingly. The arrangements are based on Shari’ah-compliant unilateral promise (waad) mechanism.