Exchange of futures for physicals

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In finance, an exchange of futures for physicals (EFP) is a transaction between two parties in which a futures contract on a commodity is exchanged for the actual physical good. This transaction involves a privately negotiated exchange of a futures position for a corresponding position in the underlying physical. An EFP is similar to an EFS, except that it involves a physical contract rather than a cash swap contract. An EFP gives the market participants the ability to manage risk.[1][2][3]

References[edit]

  1. ^ "Exchange of Futures for Physical (EFP) Explained - Part One". Silver Axis: Today in Silver. Jul 30, 2009.
  2. ^ "Exchange for Physicals (EFP)" (PDF). Risk Limited.
  3. ^ "EFP, EFR and EOO Trades". CME Group.