There are two delivery methods for futures: cash delivery refers to the expiration date of the contract, accounting for the difference between the buying and selling price and the settlement price on the expiration date, and clearing the gains and losses to the corresponding party respectively, without involving the physical delivery of the period target;
Physical delivery refers to the expiration date of the contract, when the seller delivers the corresponding goods to the delivery warehouse designated by the exchange according to the quality and quantity, and the buyer delivers the corresponding money to the exchange to fulfill the futures contract. General financial securities futures contracts are mainly cash transactions, and commodity futures contracts are mainly physical delivery.
In the futures market, commodity futures are usually delivered in kind, while some varieties in financial futures are delivered in kind and some are delivered in cash.
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. Domestic gold futures cannot be delivered in kind.
Five delivery days:
First delivery date
1. The buyer declares its intention. Within the first delivery date, the buyer submits a letter of intent for the required goods to the exchange. The contents include variety, brand, quantity and the name of the designated delivery warehouse.
2. The seller shall submit the standard warehouse receipt. The seller shall submit to the exchange a valid standard warehouse receipt that has paid the storage fee within the first delivery day.
Second delivery date
Exchange allocates standard warehouse receipts. On the second delivery day, the exchange will issue the standard warehouse receipt to the buyer according to the existing resources and the principle of "time first, quantity rounding, nearest matching and overall arrangement". For the standard warehouse receipt that cannot be used for the delivery of the next futures contract, the exchange will distribute it to the buyer according to the proportion of the total delivery in the current month.
Third delivery date
1, the buyer pays and takes the bill. The buyer must deliver the payment to the exchange and obtain the standard warehouse receipt before the third delivery date 14:00.
2. The seller collects money. The exchange shall pay the payment to the seller before the third delivery date 16:00.
Fourth and fifth delivery days
The seller pays the special invoice for VAT.
On the delivery date, the exchange collects the full amount from the buyer member: 80% of the full amount is allocated to the seller member on the same day, and the warehouse receipt of the seller member is delivered to the buyer member. When the buyer member confirms receipt of the special VAT invoice transferred by the seller member, the balance shall be settled. The transmission of invoices and the settlement of the balance shall be confirmed by the members' seals and signatures.