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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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