Printer Friendly
The Free Dictionary
904,164,867 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Exchange of Futures for Cash

    0.04 sec.
Exchange of Futures for Cash
A method by which opposite parties of a futures contract that has underlying cash commodities aim to close out their positions simultaneously. Also know as exchange for physicals (EFP).

Notes:
This process is similar to a swap and can be completed in two ways:

1. Through a transfer of a corresponding quantity of long futures contracts from the buyer of the commodity to the seller.

2. Through a transfer of a corresponding quantity of short futures contracts from the seller of the commodity to the buyer.

In both instances, the transfer of the futures contracts must be done at a price that is mutually agreed upon.


?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in
No references found
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.