Through futures trading (contract), when the contract expires, both parties to the transaction perform physical delivery performance in accordance with the provisions of the exchange contract (warehouse receipts are transferred from the seller to the buyer, and the buyer pays the seller), and the exchange simultaneously closes the positions of both parties.

The delivery procedures are handled through the exchange, and the goods are picked up in the warehouse after receiving the warehouse receipt.

The so-called physical delivery of futures refers to a form of liquidation after the trading day agreed by futures, when the contracts held by the opponents are finally delivered in kind and the futures obligations are finally settled. Ordinary commodity futures trading uses physical delivery of futures as a way to close positions.

Because futures are not for the purpose of spot purchase, but for profit preservation through bid-ask price difference, there are not many contracts that actually use futures for physical delivery. How many pages of the delivery ratio reflect the health of the market, too much liquidity and too little speculation. Mature markets generally do not exceed 5%, and the domestic delivery rate is around 3%.

Physical delivery of futures generally includes rolling delivery and centralized delivery.

1. Centralized delivery is the way adopted by Shanghai Futures Exchange and Dalian Commodity Exchange. After the last trading day of the delivery month has passed, centralized delivery will be made at one time.

2. Rolling delivery, in addition to centralized delivery, can also be delivered in the specified world from the first trading day to the last trading day of the delivery month.