Cheapest to Deliver - CTD

What Does Cheapest to Deliver - CTD Mean?
The least expensive underlying product that can be delivered upon expiry to satisfy the requirements of a derivative contract.

Investopedia explains Cheapest to Deliver - CTD
Certain derivative products provide contract holders the right to deliver different grades of underlying stocks, bonds, or commodities at specific delivery or expiry points. Because investors will always want to deliver the cheapest available underlying, the price of derivatives will always factor the CTD product.

Related Terms

Actual
Commodity
Delivery Date
Derivative
Futures
Index Future
Underlying
More Related Terms

Related Links

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.
GFT Futures - Trade all futures markets with our award-winning software. Try it free today.
Explosive Gains In Forex – Learn what makes the currency markets move with your exclusive free report!
Free Futures Trading Package - The great free give away to serious futures traders. Includes a CD-ROM and book.
Free Futures Trading Software - Nearly 80% Accurate* Market Forecasting Software. Get FREE predictions and see for yourself!
Question about futures? Lind-Waldock can help. - Our Lind Plus market strategists offer advice and tailor-made trading strategies in our free Ask a Broker Q&A reference guide.

Get a new investing term in your inbox each day!

- join our Term of the Day!