Back to Glossary
General TradingD
Delivery
Delivery in trading refers to the transfer of the actual underlying asset from the seller to the buyer upon the settlement or expiration of a futures or forward contract. Most futures contracts are closed before delivery through offsetting trades, as only a small percentage result in physical delivery.
Example
“Only about 2% of crude oil futures contracts result in physical delivery, as most traders close their positions before the contract expires.”