Delivery and liquidation refers to the phenomenon of settling contracts that have not been hedged and liquidated before expiration through physical delivery. If a trader keeps an open position until the end of the last trading day, he must close the futures transaction through physical delivery. Only a small number of people perform physical delivery in the futures market, and most market participants choose the opportunity to close their positions before the end of the last trading day, releasing their obligation to make physical delivery upon expiration.

The seller should transport the physical goods to the delivery warehouse designated by the exchange. After passing the sampling inspection by the exchange, a standard warehouse receipt will be issued to the selling member; the buyer must pay all the money before the specified delivery date. The brokerage firm deposits it with the exchange. On the delivery day, the brokerage company representing the seller will transfer the warehouse receipt and sales invoice to the brokerage company representing the buyer through the exchange, and at the same time collect the full payment. At this point, the business of closing futures contracts through delivery has ended.