DEFINITION of 'Delivery'

The action by which an underlying commodity, security, cash value, or delivery instrument covering a contract is tendered and received by the contract holder.


Delivery can occur in option, forward, or futures contracts. In most instances, the delivery of the actual underlying is rare--contracts are typically closed before settlement.

  1. Delivery Risk

    The risk that a counterparty in a transaction may not be able ...
  2. Exercise

    To put into effect the right specified in a contract. In options ...
  3. Current Delivery

    A type of futures contract that requires the delivery of the ...
  4. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  5. Futures

    A financial contract obligating the buyer to purchase an asset ...
  6. Delivery Date

    1. The final date by which the underlying commodity for a futures ...
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