DEFINITION of 'Delivery Notice'

A notice written by the holder of the short position in a futures contract informing the clearing house of the intent and details of delivering a commodity for settlement.

BREAKING DOWN 'Delivery Notice'

The delivery notice is important for both the short and long positions of a futures contract. As some contracts allow a range for the basis grade of underlying commodities, the grade in the delivery notice must be properly identified. This notice provides for a clear written contract describing the specifics for such a delivery.

  1. First Notice Day

    A First Notice Day is the day when an investor may be required ...
  2. Delivery Date

    The delivery date is the final date the underlying commodity ...
  3. Delivery Price

    The delivery price is the price at which one party agrees to ...
  4. Continuous Contract

    A reinsurance contract that does not have a fixed contract end ...
  5. Wild Card Option

    An option associated with treasury bond or treasury note futures ...
  6. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
Related Articles
  1. Trading

    Futures Fundamentals

    This tutorial explains what futures contracts are, how they work and why investors use them.
  2. Investing

    Introduction To Currency Futures

    The forex market is not the only way for investors and traders to participate in foreign exchange.
  3. Trading

    An Introduction To Trading Forex Futures

    We explain what forex futures are, where they are traded, and the tools you need to successfully trade these derivatives.
  4. Investing

    All About Liquid Commodities

    You might hear 'liquid commodities' and think of an auction, but they're actually a high-volume, fast paced financial product suitable for day traders.
  5. Investing

    Investing in Crude Oil Futures: The Risks and Rewards

    Learn about the risks and rewards of trading oil futures contracts. Read about a few strategies to limit the risk in trading oil futures contracts.
  6. Investing

    How To Talk Like An Investor

    Learn the lingo to start talking like an informed investor and make wise investment decisions in financial markets. Find out terms used in stock trading.
  7. Financial Advisor

    Top 4 Inverse Commodities ETFs (DWTI, DGZ)

    Learn about inverse commodity exchange traded funds that investors may want to consider to take a short position in certain commodities.
  1. Forward Contracts vs. Futures Contracts

    While both forward and futures contracts allow people to buy or sell a specific asset at a specific time at a given price, ... Read Answer >>
  2. What does it mean to take delivery of a derivative contract?

    Find out more about derivative contracts and what it means when the holders of derivative contracts take delivery of the ... Read Answer >>
  3. How do I learn technical skills for trading commodities?

    Learn what resources are available to learn about trading commodities, and understand some of the differences between stocks ... Read Answer >>
  4. What is the difference between options and futures?

    An option gives the buyer the right, but not the obligation to buy or sell a certain asset at a specific price at any time ... Read Answer >>
  5. Why do futures' prices converge upon spot prices during the delivery month?

    Learn why as the delivery month of a futures contract approaches, the future's price will generally inch toward or even come ... Read Answer >>
Hot Definitions
  1. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  2. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  3. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  4. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  5. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  6. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
Trading Center