Delivery date

Delivery date,

Definition of Delivery date:

  1. All futures and forward contracts have a delivery date upon which the underlying commodity must be transferred to the contract holder if they hold the contract until maturity instead of offsetting it with an opposing contract.

  2. In futures trading, date on which the financial instrument or commodity underlying a financial futures contract must be delivered to fulfill the terms of the contract. Delivery date may occur any day of the delivery month so long as proper notice is given. See also notice day.

  3. A delivery date is the final date by which the underlying commodity for a futures or forward contract must be delivered for the terms of the contract to be fulfilled. Most futures contracts are used as a hedge to reduce the risk of adverse price movements in a commodity and are closed out with an offsetting position (selling to offset a long position and buying to offset a short position) before the actual delivery date.

Meaning of Delivery date & Delivery date Definition