Futures 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, which is divided into the following two delivery methods:
1. Cash delivery: refers to the expiration date of the contract. It calculates the gains and losses of the difference between the buying price and selling price of both parties to the transaction and the settlement price on the due date, and settles the gains and losses to the corresponding parties respectively. This period does not involve the actual delivery of the target.
2. Physical delivery: refers to the expiration date of the contract, when the seller delivers the corresponding commodities to the delivery warehouse designated by the exchange according to the quality and quantity, and the buyer delivers the corresponding funds to the exchange to fulfill the futures contract. Usually, financial securities futures contracts are delivered in cash, and commodity futures contracts are delivered in kind.