Exchange of Futures for Cash

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Exchange of Futures for Cash

An agreement between two parties in which a buyer of a commodity exchanges futures contracts for the commodity. Either the buyer gives the seller a certain amount in long position futures or he/she receives from the seller an equivalent amount of short position futures. If there is a difference between the futures and the price of the commodity, it is settled in cash. This transaction is also known as an exchange for physicals.
References in periodicals archive ?
Alerts will also be sent out to indicate their requirement to exchange for physical (EFP) currency or liquidate, via an offsetting trade, their forward and / or spot currency contract(s) due to its pending expiration.
Continuing its efforts to support Islamic finance in the commodities space, DMCC Tradeflow, the online exchange for physical commodities in the UAE, handled over 900 Commodity Murabaha transactions with a total value of over $200 million during the first six months of 2014.
Earlier this year DMCC Tradeflow, the online exchange for physical commodities in the UAE, enhanced its offering by launching Commodity Murabaha.
NoDivRisk, Exchange for Physical transaction is economically equivalent to a Securities Lending Transaction.
com/How/GoldETF" target="_blank">Gold ETF</a>&nbsp;- today reported its fifth redemption of shares in exchange for physical bullion in as many weeks.
In addition to being cleared at the NYMEX Clearinghouse, the new contracts will also be available for block trading, recently introduced by the DME, Exchange for Physical (EFP) and Exchange for Swap (EFS) trades, using NYMEX's ClearPort[R] Clearing.
CMXchange, a pioneering Internet-based exchange for physical metals and raw materials trading, began operations in early 2000.
NoDivRisk Exchange for Physical (EFP) transactions today to obtain similar results achieved through equity financing tools, such as equity swaps and equity repo transactions, in an exchange traded, central counterparty environment, rather than waiting for swap execution facilities (SEFs) to launch.
NoDiv Exchange for Physical meets the technical requirements of IRS Code u1058.
Exchange for Physical ("EFP") 2010 volume was 2,511,569, up 475% from 2009.
Exchange for Physical (EFP) volume was up 106% compared to October 2010 and up 40% compared to November 2009.
Exchange for Physical ("EFP") volume was 344,805 with a total notional value of $1.