In order to avoid the delivery obligation, most futures investors close their positions in the delivery month and hold a lot of cash. Customers or members who plan to deliver through the futures exchange in the future will buy contracts or hold large amounts of cash when the contracts expire, while customers or members who plan to deliver through the futures exchange will sell contracts in large quantities, that is, futures holders.
This is the same as a commercial contract. On the delivery date, anyone who holds a position must perform the contract, that is, the buyer must buy and the seller must sell, otherwise either party will be regarded as a breach of contract. However, there are not many investors who hold delivery in the futures market, and the positions of natural person investors in commodity futures are basically unable to enter the delivery month because they cannot provide VAT invoices.
Extended data:
Futures trading is an advanced trading method based on spot trading and forward contract trading. In order to transfer the risk of market price fluctuation, it refers to the form of buying and selling futures contracts in an open competition on commodity exchanges through brokers.
Historically, futures trading has been conducted in the trading hall through oral bidding by traders. Most futures trading is done through electronic trading. When trading, investors input buying and selling orders through the computer system of the futures company, and the matching system of the exchange conducts matching transactions.
Baidu encyclopedia-futures trading