EXCHANGEFORPHYSICALS

exchange-for-physicals: translation

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