See Also: Transaction demand (for money)(money)
Transaction demand (for money)(finance)
Tight money or dear money(finance)
transaction(medicine)
transaction(dictionary)
Transaction(finance)
Ex-pit transaction(money)
Transaction fee(money)
transaction(dictionary)
Transaction fee(finance)

Ex-pit transaction (money)


Definition: [crh] The closing out of a futures position off the exchange floor. Effected when two hedgers, one long and one short, make a private deal in the cash market, and no longer need their (equal and oppoDefinition: site) futures contracts to hedge. The hedgers contact the exchange and request the contracts be nullified without making a trade on the floor. This must be done (1) to ensure neither contract resulDefinition: ts in delivery/the requirement to deliver; (2) to properly reflect open interest; and (3) to eliminate the uncertainty of the fill price should a trade actually be done to offset the positions. ExtrDefinition: emely rare. Also known as an EFP transaction, an exchange-for-physicals transaction or an against-actuals transaction.