exchange for physical


The exchange of a specified quantity of a cash commodity for an equivalent quantity of futures, often done by two traders having opposite hedged positions that each wants to offset. also called exchange against actuals, exchange of spot, exchange versus cash.

Use this term in a sentence

The exchange for physical was a cool thing for me and I was glad to be able to get a specified quantity of cash.

​ Was this Helpful? YES  NO 4 people found this helpful.

The farmers were forced to exchange for physical of their future harvest in order to get through the harsh winter.

​ Was this Helpful? YES  NO 5 people found this helpful.

When trading leveraged instruments such as futures, traders often exchange for physical to have an actual position rather than simply a theoretical one.

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
exchange for futures exchange fund