Physical Delivery

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Dictionary Says

Definition of 'Physical Delivery'

Term in an options or futures contract which requires the actual underlying asset to be delivered upon the specified delivery date, rather than being traded out with offsetting contracts.
Investopedia Says

Investopedia explains 'Physical Delivery'

Most derivatives are not actually exercised, but are traded out before their delivery date. However, physical delivery still occurs with some trades: it is most common with commodities, but can also occur with other financial instruments.

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'Physical Delivery'

  • Diamonds: The Missing Commodity Derivative

    http://www.investopedia.com/articles/optioninvestor/10/diamonds-missing-derivative.asp
    ... This is because speculators don’t want to take physical delivery of the
    commodity, they want to trade contracts and make money. ...

  • Introduction To Currency Futures

    http://www.investopedia.com/articles/forex/10/introduction-currency-futures.asp
    ... Most currency futures are subject to a physical delivery process four times a year
    on the third Wednesday during the months of March, June, September and ...

  • CFA Level 1 Study Guide - Derivatives - Forward Markets and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/forward-markets-contracts-settlement-procedures.asp
    ... Marginal Revenue; 4.6 The Demand and Supply of Financial and Physical Capital;
    4.7 Economic Rent and Opportunity Cost; 4.8 Monitoring ...

  • Futures Fundamentals: How The Market Works | Investopedia

    http://www.investopedia.com/university/futures/futures2.asp
    ... But don't worry, as we mentioned earlier, almost all futures contracts
    end without the actual physical delivery of the commodity. ...

  • Market Strength: S&P 500 Futures | Investopedia

    http://www.investopedia.com/university/strength/strength1.asp
    ... It should be noted that a majority of futures contracts get "closed out" before
    the delivery date and so no physical delivery actually takes place. ...

  • What protects an investor’s interest in the case of terrorist ...

    http://www.investopedia.com/ask/answers/09/proving-stock-ownership.asp
    ... the “Street Name”. Trading of securities in the street name involves
    no physical delivery of securities. All brokers have to ...

  • Emerging Markets Show Gold Some Love

    http://stocks.investopedia.com/stock-analysis/2011/Emerging-Markets-Show-Gold-Some-Love-GLD-SGOL-PHYS-GDX-DGL0627.aspx
    ... to store their gold in safe-haven Switzerland, while the Sprott Physical Gold Trust
    ETV (Nasdaq:PHYS) allows investors to take physical delivery of their gold. ...

  • Hedging With ETFs: A Cost-Effective Alternative

    http://www.investopedia.com/articles/exchangetradedfunds/11/benefits-etfs-hedging.asp
    ... By design, the participants rarely take physical delivery of the currency position
    and choose to cash out the ending value based on the closing currency ...

  • The International Money Market

    http://www.investopedia.com/articles/forex/10/international-money-market.asp
    ... year bond futures while the IMM secured the right to trade eurodollar contracts,
    a 90 day interest rate contract settled in cash rather than physical delivery. ...

  • CFA Level 1 Study Guide - Derivatives - Fundamental Differences ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/fundamental-differences-between-futures-forwards.asp
    ... Marginal Revenue; 4.6 The Demand and Supply of Financial and Physical Capital;
    4.7 Economic Rent and Opportunity Cost; 4.8 Monitoring ...

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