EFP

EFP is an acronym that can refer to several distinct concepts. The two most common meanings are Explosive Formed Penetrator, a type of munition, and Exchange for Physical, a term used in commodity futures markets.

An Explosive Formed Penetrator uses an explosive lens to shape a metal liner into a high-velocity projectile designed to penetrate armored targets. In practice, the concept is associated with anti-armor weapons and has appeared in various conflict zones. Because it is a weapon, detailed design and construction information is restricted and regulated under arms-control and safety laws.

An Exchange for Physical is a transaction in which a futures position is exchanged for the corresponding position in the underlying physical commodity, or vice versa. It is used by traders and producers to manage price risk and to align financial exposures with actual inventories. EFPs typically occur on regulated futures exchanges and may involve specific delivery arrangements for metals, energy, or agricultural products.

Other uses of the acronym exist in various organizations and industries, but these two senses are the most widely referenced in technical and financial literature.