exchange for physicals

exchange for physicals definition - finance
The exchange of a long or short position in a futures contract for the equivalent position in the cash market. The exchange for physicals transaction allows a futures trader to get out of position when the futures market is closed. An EFP allows the trader to respond to a new development in the market.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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