exchange for physicals


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. Chicago Board of Trade glossary
————
An ex pit transaction in which traders may initiate or liquidate their positions by arranging for the simultaneous purchase or sale of the actual cash commodity pursuant to CME Rule 538 or 719.Example: One party buys the cash market currency and sells a CME FX futures contract, while the opposing party sells the cash currency and buys the CME FX futures contract. Chicago Mercantile Exchange Glossary
————
The exchange between two customers of a physical and futures position, which is agreed directly between the two parties outside of the exchange on which the futures are dealt. EFPs are reported to the exchange, and documentary evidence of a physical transfer of goods may be required by the exchange. Also known as against actuals on the LIFFE Commodity market. Dresdner Kleinwort Wasserstein financial glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • exchange-for-physicals — An ex pit transaction in which traders may initiate or liquidate their positions by arranging for the simultaneous purchase or sale of the actual cash commodity pursuant to CME Rule 538 or 719.Example: One party buys the cash market currency and… …   Financial and business terms

  • exchange of futures for physicals — A futures contract provision involving an agreement for delivery of a physical product that does not necessarily conform to contract specifications in all terms from one market participant to another, and a concomitant assumption of equal and… …   Financial and business terms

  • Exchange of Futures for Cash — A method by which opposite parties of a futures contract that has underlying cash commodities aim to close out their positions simultaneously. Also know as exchange for physicals (EFP). This process is similar to a swap and can be completed in… …   Investment dictionary

  • physicals — Stock Exchange stocks held in actual commodities for immediate exchange, as opposed, for example, to futures. → physical …   English new terms dictionary

  • cash for futures — See Exchange For Physicals. Chicago Mercantile Exchange Glossary …   Financial and business terms

  • International Petroleum Exchange — IPE An exchange, founded in London in 1980, that deals in futures contracts and options (including traded options) in oil (gas oil, Brent crude oil, and heavy fuel oil) with facilities for making an exchange of futures for physicals (see actuals) …   Big dictionary of business and management

  • Transitional Living for Older Homeless Youth — In the United States, Transitional Living Programs usually refer to programs and efforts to teach independent living skills to homeless youth and help them transition to adulthood. The United States government supports a grant program to fund… …   Wikipedia

  • ex-pit transaction — The closing out of a futures position off the exchange floor. Effected when two hedgers, one long and one short, make a private deal in the cash market, and no longer need their (equal and opposite) futures contracts to hedge. The hedgers contact …   Financial and business terms

  • against actuals — A transaction generally used by two hedgers who want to exchange futures for cash positions. Also referred to as exchange for physicals or versus cash . Chicago Board of Trade glossary The term used on the LIFFE commodity market for an exchange… …   Financial and business terms

  • ex pit transaction — The term Ex Pit refers to any transaction done non competitively. The only permissible ex pit transactions are EFPs EBFs defined block trades and transfers. Block trades must be executed in accordance with Rule 526. EFP and EBF transactions must… …   Financial and business terms


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.