Commodities Definitions

Exchange for Physicals (EFP)

Posted By: TradersLog

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.

Enjoying the Exchange for Physicals (EFP) information? Sign up for the newsletter today and access even more top quality trading related content! Learn More

No Comments

Categories Commodities Definitions, Definitions, Futures Definitions | Tags: Futures Definitions

By submitting a comment here you grant Traders Log a perpetual license to reproduce your words and name/web site in attribution. Inappropriate or irrelevant comments will be removed at an admin's discretion.

Definitions

Trading Articles

Broker Reviews

Trading Software Reviews

Trader Tools

Contact Us

Privacy Policy

The information contained on TradersLog.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. TradersLog.com is not a broker, nor does it have an affiliation with any broker.

The risk of loss in trading securities, options, futures and forex can be substantial. The comments and reviews posted on TradersLog.com reflect the opinions of our readers. No warranty can be given as to the accuracy or the completeness of the comments and reviews posted by users or as to the results obtained by those using such information.

Categories

Commodities Definitions

Posted By: TradersLog

Leave a Reply