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.
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.
Generally speaking, the purpose of futures trading is not to obtain the due physical objects, but the purpose of hedgers is to transfer the price risk in the spot market through futures trading.
At present, futures in China generally do not allow individuals to make physical delivery. If an individual needs to buy or sell physical goods, he needs to entrust an enterprise legal person customer who can deliver the goods on his behalf. If an individual has a warehouse receipt and enters the delivery month, the exchange will force the liquidation.
Futures is not just a game of money. Buy what you want, and sell what you want.