Exchange for Physicals
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(Redirected from Exchange of Futures for Physicals)
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Exchange for Physicals, known by their acronym -- EFPs, are transactions 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. This is also known as Exchange of Futures for Cash.
