exchange of future for physical(s)

exchange of future for physical(s)
The exchange between two customers of a physical and futures position, which is agreed directly between the two parties outside of the exchange on which the futures are dealt. EFPs are reported to the exchange, and documentary evidence of a physical transfer of goods may be required by the exchange. Also known as against actuals on the LIFFE Commodity market. Dresdner Kleinwort Wasserstein financial glossary

Financial and business terms. 2012.

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