In trading and investment, the delivery date refers to the date on which the underlying asset of a futures or forward contract is delivered from the seller to the buyer. Delivery dates are specified in financial contracts such as options and futures, and both parties in the transaction are legally obligated to honour them.
In a futures contract, the delivery date is the date on which the contract buyer must take delivery of the underlying asset. Simultaneously, the seller is obligated to deliver this underlying asset.
When futures trading, traders may also opt to settle contracts before the delivery date with cash. This is called cash settlement, and it can be useful for parties who do not want to physically exchange underlying assets. This is common in the commodities market, where underlying assets such as oil, natural gas, and agricultural goods can be difficult to transport and store.
In an options contract, the delivery date is the date on which the contract holder has the right– but is not obligated – to exercise the contract. If the trader does nothing, the contract will expire worthless.
ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account .