Physical Delivery

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 ?
The physical delivery including balance responsibility to all establishments listed in Annex 1.
The DME Oman contract currently has the largest physical delivery of any energy futures contract in the world.
The Dubai Commodities Clearing Corporation, or DCCC, the central counter-party service provider wholly-owned by the Dubai Gold and Commodities Exchange, or DGCX, has successfully completed its first physical delivery against the region's first plastics futures contract.
The proposed changes are to clarify certain operational aspects of the physical delivery process, and are based on feedback from active rubber market participants.
If you have holdings in the e-commodity series of the National Spot Exchange Limited (NSEL), you may have to take physical delivery of the commodity as the exchange has suspended trading in eseries contracts till further notice.
Addressing a press conference at Karachi Cotton Exchange Building here Monday, chairman CBF Naseem Usman said that the futures trading in cotton as allowed by the SECP at the PMEX does not involve physical delivery of cotton.
Further, the quality of physical delivery shall be certified by the approved analyzers.
By substituting physical delivery of the merchandise for cash settlement, the Exchange has created greater efficiency in the sale of the commodity.
Emerging Metals Limited (AIM: EML), the mining company focused on minor and emerging metals, is pleased to announce that it has contracted for the physical delivery of 25,000lbs triuranium octocide ("U3O8") and has entered into an option agreement for the physical delivery of a further 200,000lbs U3O8.
Sir, So only 1% or 2% of dairy futures contracts are expected to result in physical delivery, with the balance settled by speculators ('Dairy futures market to begin trading in autumn', 24 July, p35)?
Transaction Involves Physical Delivery of Gold and Steel Rebar Futures Contracts
Unfortunately, say traders, the two new contracts - which are meant to appeal to financial traders by sidestepping the risk of making or taking physical delivery of Brent or Oman crude - may face exactly the same problem as their predecessors.