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The sale of a futures or forward contract may require the seller to deliver the commodity during the delivery month, if the short position is not offset prior to that time.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The transfer of a security or an underlying asset to a buyer. The term is often used in options, forward, and futures contracts, in which payment and delivery are separated by a relatively long period of time. Most of the time, however, delivery does not occur, as most traders offset their positions with opposite contracts.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
To relinquish possession of a security for transfer to another party.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.