Physical delivery refers to the process that when a futures contract expires, both parties to the transaction settle the expired open contract by transferring the ownership of the goods contained in the futures contract. Commodity futures trading generally adopts the physical delivery system.
Although the proportion of final physical delivery of futures contracts is very small, it is this very small amount of physical delivery that connects the futures market with the spot market and provides an important prerequisite for the function of the futures market.
In the futures market, physical delivery is an institutional guarantee to make futures prices and spot prices tend to be consistent. When the futures price seriously deviates from the spot price due to excessive speculation, traders will arbitrage between the futures and spot markets. When the futures price is too high and the spot price is too low, traders sell futures contracts in the futures market and buy goods in the spot market.
In this way, the spot demand increases, the spot price rises, the supply of futures contracts increases, the futures price drops, and the spot price difference narrows; When the futures price is too low and the spot price is too high, traders buy futures contracts in the futures market and sell goods in the spot market. In this way, futures demand increases, futures prices rise, spot supply increases, and spot prices fall, making spot spreads tend to be normal.
The above analysis shows that through physical delivery, futures and spot markets can achieve mutual linkage, and futures prices eventually tend to be consistent with spot prices, so that futures markets can really play the role of price barometer.
Some hedgers who are familiar with the spot circulation channels, in actual operation, directly throw or buy the spot in the futures market according to the relevant information of the spot market to obtain the price difference. This on-call approach eliminates the risks brought by various non-price factors to a certain extent, and objectively plays a role in guiding production and ensuring profits.
Delivery is the actual delivery of the ownership of the transaction currency by both parties. The concept of delivery comes from futures and is divided into physical delivery and cash delivery. A bill of lading is a document used to record the specific transaction of delivery.
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.
Cash delivery refers to the delivery method of calculating the profit and loss of the open futures contract at the settlement price when the open futures contract is delivered, and finally settling the futures contract by cash payment.
This delivery method is mainly used for financial futures and other futures contracts that cannot be delivered in kind, such as stock index futures contracts. Some foreign exchanges are also exploring cash delivery of commodity futures. China's commodity futures market does not allow cash delivery.
Extended data:
Several financing methods:
1, bank loan
Banks are the main financing channels for enterprises. According to the nature of funds, it is divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills.
2. Stock financing
The stock is permanent, has no expiration date, does not need to be returned, has no pressure to repay the principal and interest, and has little financing risk. The stock market can promote enterprises to change their management mechanism and truly become a legal entity and market competition subject with independent operation, self-financing, self-development and self-restraint.
At the same time, the stock market provides a broad stage for asset reorganization, optimizes the organizational structure of enterprises and improves the integration ability of enterprises.
3. Bond financing
Corporate bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the issuing enterprises and investors.
Bondholders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. When an enterprise goes bankrupt and liquidates, creditors have priority over shareholders in claiming compensation for the remaining property of the enterprise. Corporate bonds, like stocks, are securities and can be freely transferred.
4. Financing lease
Financial leasing refers to the financing mode in which the lessor purchases the leased property from the supplier according to the lessee's choice of the supplier and the leased property, and provides it to the lessee for use, and the lessee pays the rent in installments within the time limit stipulated in the contract or contract.
Through the combination of financing and finance, financial leasing has the dual functions of finance and trade, and plays a very obvious role in improving the financing efficiency and promoting the technological progress of enterprises.
Financial leasing includes direct purchase leasing, after-sale leaseback and leveraged leasing. In addition, there are many forms of leasing, such as the combination of leasing and compensation trade, the combination of leasing and processing and assembly, and the combination of leasing and underwriting.
The financial leasing business has opened up a new financing channel for the technological transformation of enterprises, and adopted a new form of combining financing with finance, which has improved the speed of introducing production equipment and technology, saved the use of funds and improved the utilization rate of funds.
5. Overseas financing
The overseas financing methods available to enterprises include loans from international commercial banks, loans from international financial institutions, and bond and stock financing business of enterprises in major overseas capital markets.
6. Pawn financing
Pawn is a kind of financing method that takes physical objects as collateral and obtains temporary loans in the form of physical object ownership transfer. Compared with bank loans, pawn loans have high cost and small loan scale, but pawn also has incomparable advantages over bank loans.
First of all, compared with the bank's almost harsh requirements for the borrower's credit conditions, the pawnshop's credit requirements for customers are almost zero, and the pawnshop only pays attention to whether the pawned items are genuine. Moreover, general commercial banks only pledge real estate, while pawn shops can pledge both movable property and real estate. Secondly, the starting point of pawn items in pawn shops is low, and items of 1000 yuan and 100 yuan can be pawned.
Contrary to banks, pawn shops pay more attention to serving individual customers and small and medium-sized enterprises. Third, compared with the complicated procedures and long approval cycle of bank loans, the procedures of pawn loans are very simple and most of them are desirable. Even property mortgage is much more convenient than bank. Fourth, when a customer borrows money from a bank, the purpose of the loan cannot exceed the scope stipulated by the bank.
Pawnshops, on the other hand, don't ask about the purpose of loans, and the money is very free to use. Repeatedly, the utilization rate of funds has been greatly improved.
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