It should be noted that enterprises can participate in physical delivery, and individuals generally cannot hold positions to enter the delivery month. The exchange will force the liquidation of a single position before the delivery month. Therefore, it is best for individuals to replace a main contract in time one month before the expiration of the position contract.
How is stock index futures delivered?
Stock index futures and short-term interest rate futures are delivered in cash, which means there is no need to deliver a basket of stock index components. On the contrary, the spot index on the maturity date or the next day is the final settlement price, and the profit and loss are settled at the final settlement price, thus closing the position.
The delivery date of futures refers to the time when goods need to be delivered. Different types of futures have different futures trading days. Investors can check the relative trading days on the official website Stock Exchange. On the delivery date, if investors don't close their positions by themselves, they will be forced to close their positions by the exchange, which is the so-called strong liquidation. Closing a position means selling it all.