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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.


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.


To relinquish possession of a security for transfer to another party.
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