Exchange for Physicals - This is an exchange of the physical commodity for a monetary settlement.
A futures contract provision involving the delivery of physical product (which does not necessarily conform to contract specifications in all terms) to one market participant from another and a concomitant assumption of equal and opposite futures positions by the same participants to the physical transaction. An EFP occurs during the futures contract trading period.
Exchange for physical - a term originating on American futures exchanges but now increasingly in common use on the LME whereby two physical counterparties swap a physical parcel and an LME position at mutually agreed prices to avoid each of them having to hedge the transaction separately.
Exchange for Physical - a standard procedure during which a futures contract is exchanged for physical metal before due date.
Exchange for Physical. EFP trades are OTC currency trades done to offset or initiate futures positions. This allows a Client to access the liquidity of the OTC FX market. Quotes are made IMM style and transactions are posted on the IMM exchange for the client's account.
A trading technique involving index futures and the stocks composing the index. Complex computer programs show deviations in the spread between the futures and the stocks. The trader attempts to profit through arbitrage--buying the index future and selling the stocks short, or vice versa. As the spread returns to its norm, the positions are closed out at a profit. See: Arbitrage; ; Index Arbitrage
Exchange For Physical. Strictly, an arrangement between a Nymex supplier and receiver for delivery of a product not conforming to contract specifications. More generally, a purchase in which the physical transaction is accompanied by a corresponding exchange of futures.
(Exchange for Physical): A mechanism that allows a client to open or close a futures contract through the physical market when the futures market is closed.
See Exchange of Futures for Physicals.
An exchange of futures for physicals, which is a transaction in which one party buys the physical commodity and simultaneously sells futures and the other party does the opposite*- sells the physical commodity and simultaneously obtains a long futures position.
See Exchange for Physical.
Exchange for Physicals. A transaction in which the buyer of a cash commodity transfers to the seller a corresponding amount of long futures contracts, or receives from the seller a corresponding amount of short futures, at a price difference mutually agreed upon. In this way, the opposite hedges in futures of both parties are closed out simultaneously. Also called Exchange of Futures for Cash, AA (Against Actuals), or Ex-Pit transactions.
Exchange for Physical. See Exchange of Futures for Cash.
Exchange for Physicals. A transaction generally used by two hedgers who want to exchange futures for cash positions. Also referred to as Against Actuals or Versus Cash.