Investopedia

Approved Delivery Facility

Dictionary Says

Definition of 'Approved Delivery Facility'

A facility authorized by an exchange to be used as a location for the delivery of commodities tendered upon futures contracts. Approved delivery facilities are typically banks, storehouses, mills, warehouses, grain elevators, stockyards or other depositories where commodities are transferred between two parties in a futures contract that results in physical delivery. A futures contract position can be closed before delivery, at which point there is no exchange of a physical commodity. When a futures contract results in physical delivery, the commodity must be delivered by the seller to the buyer.

Also called "delivery points."

Investopedia Says

Investopedia explains 'Approved Delivery Facility'

Delivery generally refers to the changing of ownership or control of a commodity. A notice of intention to deliver usually precedes it. The new owner can take possession of the physical commodity, can deliver it to the futures market in satisfaction of a short position, or can sell the delivery to another market participant.

Articles Of Interest

  1. The Role Of Speculators In The Commodity Market

    Contrary to popular belief, speculators are important for the market. Find out exactly what they do.
  2. Commodities: The Portfolio Hedge

    These diverse asset classes can provide downside protection and upside potential. Find out how to use them.
  3. Trading The Soft Commodity Markets

    Learn the contract specifications for a few of the most heavily traded commodities.
  4. Diamonds: The Missing Commodity Derivative

    While they may be "a girl's best friend", diamonds haven't made it to the futures market - yet.
  5. Commodities That Move The Markets

    Find out how the everyday items you use can affect your investments.
  6. Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  7. Is The Gold Pain Over?

    After falling more than 13%, gold has staged a rebound but is that for fundamental reasons or the work of value investors? Will gold reward investors who didn't give up or is there more pain ...
  8. Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  9. Trading Is Timing

    Learn how to make gains even if you don't get in at the right time.
  10. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center