DEFINITION of 'Delivery Month'
A key characteristic of a futures contract that designates when the contract expires and when the underlying asset must be delivered. The exchange on the futures contract is traded will also establish a delivery location and a date within the delivery month when the delivery can take place. Not all futures contracts require physical delivery of a commodity, and many are settled in cash.
Also referred to as "contract month."
INVESTOPEDIA EXPLAINS 'Delivery Month'
On the ticker, delivery month is indicated by a letter.
Some commodities can be delivered in any month. Others are only delivered in certain months. For example, cocoa can only have a delivery month of March, May, July, September or December, while copper can be delivered year round. The complete ticker symbol for a futures contract will describe the commodity, the delivery month and the year. "CCZ11," for instance, indicates a cocoa contract for delivery in December 2011.
A type of futures contract that requires the delivery of the ...
A financial contract obligating the buyer to purchase an asset ...
1. In derivatives, the security that must be delivered when a ...
The action by which an underlying commodity, security, cash value, ...
1. The final date by which the underlying commodity for a futures ...
A document given to the holder of a futures contact that may ...
Forex EducationLearn how these futures are used for hedging and speculating, and how they are different from traditional futures.
Options & FuturesDiscover the world of options, from primary concepts to how options work and why you might use them.
Options & FuturesLearn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.
Options & FuturesThere's one simple hurdle in the transition from stock to futures options: learning about product specifications.
Trading StrategiesIt's a fairly safe bet that as the delivery month of a futures contract approaches, the future's price will generally inch toward or even come to equal the spot price as time progresses. This ...
InsuranceFor 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.
Chart AdvisorCocoa prices have been trending lower over the past several months and the recent bearish crossover between the 50-day and 200-day moving averages suggest that the long-term downtrend is gaining ...
Options & FuturesFind out what technical analysts mean when they talk about a market experiencing divergence or convergence and how they affect trading strategies.
Options & FuturesIf there’s a security whose price fluctuates, there can theoretically be a futures marketplace for it.
MarketsA commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commonly traded commodities include gold, beef, oil, lumber and natural gas. Additional ...