exchange for physicals (EFP)
- A trade where the buyer swaps a cash commodity for an equivalent in long futures contracts given by the seller, or vice versa, at an agreed price difference, thereby ending both parties' futures hedges
- This wheat deal is done as an exchange for physicals (EFP), where cash wheat is exchanged for wheat futures.
- They used an exchange for physicals (EFP) to close their futures hedges, swapping cash commodities for futures contracts.
- The company opted for an exchange for physicals (EFP) to get rid of their futures hedges.
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