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Delivery

• The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.

 
 Embedded terms in definition
 Commodity
Contract
Futures contract
Futures
Settlement
Tender
 
 Referenced Terms
 Adp: Is the Alternative Delivery Procedure at the New York Mercantile Exchange. It provides for longs and shorts to make and take delivery under terms which differ from those specified as good delivery for the contract. These transactions can occur at any time during a delivery period.

 Backwardation: A market condition in which futures prices are lower in the distant Delivery months than in the nearest delivery month. This situation may occur in when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of co tango.Is the market condition whereby the deferred or more forward Delivery months are at a progressive discount to the spot or nearby month. This is also known as an inverted market. This is opposite to a contango or carrying charge market.

 Backwardation: A market condition in which futures prices are lower in the distant Delivery months than in the nearest delivery month. This situation may occur in when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of co tango.Is the market condition whereby the deferred or more forward Delivery months are at a progressive discount to the spot or nearby month. This is also known as an inverted market. This is opposite to a contango or carrying charge market.

 Book transfer: Is the conveyance or change in ownership without a physical Delivery.

 Butterfly trade: Is the sale of two units of a futures contract and the purchase of two units of a futures contract. Here, the contracts are positioned across three different Delivery months. One pattern would be buy 1 March, Sell 2 April, and Buy 1 May. This strategy is also used in the credit markets.

 
 Related Terms
 Cash delivery
Cash on delivery or c.o.d. cod transaction
Delivery charges
Delivery month
Delivery notice
Delivery options
Delivery points
Delivery price
Delivery versus payment
Forward delivery
Good delivery
Good delivery and settlement procedures
Making delivery
Overnight delivery risk
Taking delivery

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