Physical delivery refers to the behavior of the buyers and sellers of futures contracts to close the positions of the expired open contracts by transferring the ownership of the subject matter of futures contracts in accordance with the rules and procedures formulated by the exchange when the contracts expire. Commodity futures generally adopt the way of physical delivery.

In futures trading, there is another situation besides selling and closing positions, because you can sell goods that are not in futures trading. For example, you have nothing on your books now, but if a buyer wants 65,438+000 units of goods, you can sell it to him (although you don't have it). After you see a seller's bid, you can buy and close the position (and of course make money). You can look up books, such as college textbooks.

For example, if you buy 1 month copper, your position will be displayed as 1 hand. If you sell 1 hand and close the same contract later, your position will be 0, and the subsequent behavior will be hedging and closing the position. Before you close your position, your warehouse will be displayed as 65,438+0 open positions. After closing the position,