Delivery Month

AAA

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.


January: F
February: G
March: H
April: J
May: K
June: M
July: N
August: Q
September: U
October: V
November: X
December: Z


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.

RELATED TERMS
  1. Last Trading Day

    The final day that a futures contract may trade or be closed ...
  2. Actuals

    The physical commodity that underlies a futures contract or is ...
  3. Cash Settlement

    A settlement method used in certain future and option contracts ...
  4. Crush Spread

    A trading strategy used in the soybean futures market. A soybean ...
  5. Current Delivery

    A type of futures contract that requires the delivery of the ...
  6. Futures

    A financial contract obligating the buyer to purchase an asset ...
Related Articles
  1. Getting Started In Foreign Exchange ...
    Forex Education

    Getting Started In Foreign Exchange ...

  2. Options Basics Tutorial
    Options & Futures

    Options Basics Tutorial

  3. Interpreting Volume For The Futures ...
    Options & Futures

    Interpreting Volume For The Futures ...

  4. Options On Futures: A World Of Potential ...
    Options & Futures

    Options On Futures: A World Of Potential ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center