Closing futures positions:

· Offset {buy a contract to close a short position and sell a contract to close a long position, most common}.
· Delivery {any contract outstanding at expiration settled by physical delivery of asset, less than 1% of settlement use this method.
· Cash settlement {many financial futures do not allow physical delivery and instead require cash settlement}.
· Exchange for physicals (EFP) {two traders with opposite side of a contract conduct the transaction and ask exchange to cancel their positions, different from delivery:

• actually exchange goods
• contract not closed
• 2 traders privately negotiated