EXCHANGE FOR PHYSICALS
exchange for physicals: translation
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
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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
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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