Physical delivery can be divided into seller delivery and both parties delivery.
1. The so-called two-party delivery means that both buyers and sellers of futures trading can apply for delivery, which is adopted by Dalian Commodity Exchange and Shanghai Futures Exchange.
2. The so-called seller's delivery means that only the seller has the right to apply for delivery, and the buyer has no right to take the initiative to deliver.
Physical delivery refers to the behavior of the buyers and sellers of futures contracts to close the positions of the expired open contracts by transferring the ownership of the subject matter of futures contracts in accordance with the rules and procedures formulated by the exchange. Commodity futures trading generally adopts the way of physical delivery. After entering the delivery period, the seller submits the standard warehouse receipt, and the buyer submits the full amount, and goes through the delivery formalities at the exchange.