The delivery definition is the specific criteria that must be met in order for a futures contract to be considered "delivered." This includes the specific asset or commodities to be delivered, the quantity, the delivery date, and the location. What is the delivery time? The delivery time for a futures contract is the date on which the contract expires and the underlying asset is delivered.
What are types of delivery?
Some common types of delivery methods used in futures and commodities trading are:
-The physical delivery of the underlying commodity
-Delivery versus payment (DvP)
-Free on board (FOB)
The physical delivery of the underlying commodity is the most common type of delivery and is used in the majority of cases. With this type of delivery, the buyer takes possession of the commodity and pays for it upon receipt.
Cash settlement is another common type of delivery, and is often used in cases where the underlying commodity is not easily transportable or if the buyer does not want to take possession of it. With cash settlement, the buyer and seller agree to a price and the buyer pays the seller the agreed-upon amount.
Delivery versus payment (DvP) is a type of delivery that is often used in conjunction with cash settlement. With DvP, the buyer pays the seller the agreed-upon amount and, in return, the seller delivers the commodity to the buyer.
Free on board (FOB) is a type of delivery that is often used for international transactions. With FOB, the buyer pays the seller the agreed-upon amount and, in return, the seller delivers the commodity to the buyer's designated port.
What are the 4 types of delivery?
1. Spot delivery: A spot delivery is when the commodity is delivered immediately after the trade is executed.
2. Forward delivery: A forward delivery is when the commodity is delivered at a later date, as specified in the contract.
3. Futures delivery: A futures delivery is when the commodity is delivered at a later date, as specified in the contract, but the price is determined at the time of the trade.
4. Option delivery: An option delivery is when the commodity is delivered at a later date, as specified in the contract, but the price is not determined until the option expires.
What is terms of delivery and payment? The terms of delivery and payment are the conditions under which a commodity is delivered and paid for. The terms of delivery may include the date of delivery, the method of delivery, and the quantity to be delivered. The terms of payment may include the method of payment, the currency of payment, and the date of payment. What's delivery margin? The delivery margin is the amount of money that must be deposited in order to open a position in a futures contract. This margin is used to cover the cost of the contract and to protect the broker against loss.