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 ?
it the best year in the history of the exchange for physical delivery reinforcing DME's critical role as a key global energy trading platform.
This impressive performance made it the best year in the history of the exchange for physical delivery reinforcing DMEs critical role as a key global energy trading platform.
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.
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.
Further elements include the establishment of market-based congestion management as well as common reserves and balancing power market, full opening of the retail market and the setting up of a common power exchange for physical trade in the Nordic and Baltic areas.
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.
People pay governments money in exchange for physical and economic security.
One of the appeals of Exchange for Physical (EFP) trades discussed below is the ability to control the market impact through a two-party matched execution.
CMXchange, a pioneering Internet-based exchange for physical metals and raw materials trading, began operations in early 2000.
This impressive performance, according to the DME, makes it the best year in the history of the exchange for physical delivery, reinforcing DME's critical role as a key global energy-trading platform .