Physical Delivery

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Physical Delivery

In options and futures, the act of a seller giving the actual underlying asset to a buyer. Physical delivery does not occur for most option and futures transactions; most traders offset their positions by entering an equal but opposite position. However, in order to hedge certain risks, physical delivery does occur on some contracts, notably those involving commodities. See also: Actuals.
References in periodicals archive ?
May 29 /PRNewswire/ -- Power Team's first quarter sales jumped to almost 22 million megawatt hours with a large portion of that being actual physical deliveries rather than paper trades, Power Team Nancy Bessey said today.
Increasing this electronic delivery percentage not only enables our customers to deliver a greater number of pristine digital files, but also reduces their cost for physical deliveries.
Traditional physical deliveries via our dub and ship facilities are expected to decline dramatically.