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How to deliver futures short selling?
Commodity futures are generally delivered in kind, while financial futures are generally delivered in cash.

Both parties to a contract that adopts physical delivery shall make physical delivery at the place designated by the exchange, and generally there is a designated place in the contract. For example, short sugar, before delivery, you should take your sugar spot to deliver the warehouse receipt and register the warehouse receipt, and then hand in the warehouse receipt directly and collect money at the short price.

Cash delivery refers to the delivery method of calculating the profit and loss of the open futures contract at the settlement price when the open futures contract is delivered, and finally settling the futures contract by cash payment.

Cash delivery is based on the spot price at the time of delivery as the basis for trading profit and loss and fund allocation, because it does not carry out physical delivery. Therefore, the spot price of varieties for cash delivery should have the characteristics of certainty, and it is standard and unique. The regional price difference of agricultural products is very obvious, and it does not have the conditions for cash delivery. The trading target of stock index futures is stock index, which is fictitious and unique and more suitable for cash delivery. In addition, it should be understood that domestic gold futures cannot be delivered in kind.