Exchange of futures for physicals

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.{{cite web

| title =Exchange of Futures for Physical (EFP) Explained - Part One

| work =Silver Axis: Today in Silver

| date =Jul 30, 2009

| url =http://silveraxis.com/todayinsilver/2009/07/30/exchange-of-futures-for-physical-efp-explained-part-one/

}}{{cite web

| title =Exchange for Physicals (EFP)

| work =Risk Limited

| url =http://www.risklimited.com/Exchange-for-Physicals.pdf

}}{{cite web

| title =EFP, EFR and EOO Trades

| work =CME Group

| url =http://www.cmegroup.com/clearing/trading-practices/efp-efr-eoo-trades.html

}}

References