Physical Delivery
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 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. |
Related Definitions
Articles Of Interest
-
Options Basics Tutorial
Discover the world of options, from primary concepts to how options work and why you might use them. -
Options On Futures: A World Of Potential Profit
There's one simple hurdle in the transition from stock to futures options: learning about product specifications. -
Futures Fundamentals
For 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. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed.
Free Annual Reports