I have been with the API downloading forward curves. When there is a forward curve with two currencies, one with just NDF contracts and the other with both NDF and outrights, I have realized that the triangulation checks out both NDF curves are used.
I would like to know, why do you think this is the best approach?
For clarity I will introduce an example, let's say I want to valuate a BRLCNY forward with two forward curves (EURBRL and EURCNY). Would it be correct to use the EURBRL outright curve and EURCNY NDF curve? When searching for BRLCNY NDF curve directly the results are the same as if you use the two NDF curves (EURBRL and EURCNY).
Also, given that the differencees between NDF and Out are nonneglible, I would like to ask what is the reason underlying that fact?
Thank you in advance.