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Definition of 'Delivery Point'
In futures contracts, the delivery point is the place where the commodity will be delivered; the chosen location will have an effect on the net delivery price/cost. The price of commodities differs by location due to the costs of transporting them from their source to the delivery point. Thus, in order to specify a single price of a commodity for contract purposes, the delivery point is an essential detail.
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Investopedia explains 'Delivery Point'
The delivery point is most often set at major transportation hubs for the commodity. These places are popular as a matter of convention. For example, Cushing, Oklahoma is a popular delivery point for oil contracts. Meanwhile, the Henry Hub in Erath, Louisiana is a popular delivery point for natural gas contracts.
The change in prices due to the delivery point is readily observable in gasoline prices. If you go on a road trip between cities, you will most often notice gradual changes in the average price of gasoline. Prices are lowest around major oil refining centers. Where gasoline must be delivered over a very long distance, prices will be considerably higher.
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Search results for 'Delivery Point'
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http://www.investopedia.com/articles/optioninvestor/07/energy_market.asp
... These areas are subject to change by the exchange. For example, currently
for the NYMEX, the delivery point is in Cushing, Oklahoma. ...
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http://www.investopedia.com/ask/answers/06/currencyfuturesandspotfx.asp
... pair is exchanged on the delivery date, which is usually some time in the distant
future. In the spot FX, the price is also determined at the point of trade ...
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http://www.investopedia.com/university/financialstatements/financialstatements5.asp
... Type of Sales Cycle, Sales are made at delivery or "point of sale", Sales are made
via long-term service, subscription or membership contracts, Fitness facility ...
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http://www.investopedia.com/ask/ViewFAQPrintable.aspx?url=%2fask%2fanswers%2f06%2fcurrencyfuturesandspotfx.asp
... pair is exchanged on the delivery date, which is usually some time in the distant
future. In the spot FX, the price is also determined at the point of trade ...
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http://www.investopedia.com/articles/optioninvestor/02/061302.asp
... each, so a full point ($1) is equal to $250. The active month is known as the
"front-month contract", and it is the first of the three delivery months listed ...
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http://www.investopedia.com/articles/optioninvestor/07/meat_market.asp
... to feeder cattle, lean hogs are also cash settled, which means there is no delivery. ...
since 2000 and has worked as a Nasdaq trader for Great Point Capital, a ...
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http://www.investopedia.com/articles/optioninvestor/06/goldsilverfutures.asp
... Unlike hedgers, speculators have no interest in taking delivery, but instead try
to profit by ... 2000 and has worked as a Nasdaq trader for Great Point Capital, a ...
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http://www.investopedia.com/articles/trading/03/102203.asp
... and decreasing participation based on the coming and going of individual delivery
months. ... A falling volume and a rising open interest point to a period of slow ...
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http://www.investopedia.com/articles/forex/07/market_sentiment.asp
... total number of contracts entered into, but not yet offset, by a transaction or
delivery. ... is generally supportive of the current trend, and tends to point to a ...
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http://www.investopedia.com/articles/optioninvestor/07/soft_market.asp
... There are delivery points in each nation where the sugar is produced. ... in the business
since 2000 and has worked as a Nasdaq trader for Great Point Capital, a ...
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