(A) the concept of delivery

There are generally two ways to close positions in commodity futures trading (namely, closing positions). One is hedging liquidation; The second is physical delivery. Physical delivery is to fulfill the responsibility of futures trading through physical delivery. Therefore, futures delivery refers to the behavior of buyers and sellers of futures trading to make physical delivery of their respective expired open contracts in accordance with the provisions of the exchange when the contracts expire and end their futures trading.

(B) the role of delivery

Although physical delivery accounts for a small proportion in the whole futures contract, it is physical delivery and this potential that make the changes of futures prices synchronized with the changes of related spot prices, and gradually approach with the approach of contract expiration date. As far as its nature is concerned, physical delivery is a kind of spot trading behavior, but physical delivery in futures trading is the continuation of futures trading, which is at the junction of futures market and spot market and is the bridge and link between futures market and spot market. Therefore, the physical delivery in futures trading is the basis of the existence of the futures market and the fundamental premise for the two major economic functions of the futures market to play.

This is the definition of futures delivery. You see, without the physical delivery of securities, the so-called delivery is a trading system, which is the same as the hedging position in futures. That is, buying and selling stocks.

Futures Exchange QQ: 928 142282