The concept of delivery order
Physical delivery refers to the personal behavior of the buyers and sellers of futures contracts to transfer the ownership guaranteed by futures contracts in accordance with the norms and procedures formulated by the exchange at the expiration of the contracts, without forcibly closing the positions. Product futures trading generally adopts the way of physical delivery.
Cash delivery refers to the delivery method of calculating the profit and loss of the futures contract at the closing price without compulsory closing, and finally ending the futures contract by cash settlement. This delivery method is mainly used for futures contracts where financial futures and other futures collateral cannot be delivered in kind, such as stock index futures contracts. Some overseas exchanges are also exploring the use of cash delivery for product futures trading. China product futures market shall not make cash delivery. This article mainly talks about the relevant knowledge points of communication, for reference only.