What does Delivery Date mean?
The date on which the delivery of the underlying in a futures contract must be delivered to fulfill the terms of a contract. It is also known as the maturity date of the futures contract. This is specified in the contract entered into by the buyer and the seller.
Futures Knowledge Explains Delivery Date
In a futures contract, the underlying can be a commodity or an instrument such as stocks, and currencies. The quantity, price and delivery date of the underlying is predetermined. For example, two parties X (the buyer) and Y (the seller) enter into a futures contract for 500 units of wheat at a predetermined price where the contract ends on 30th September. Here, the 30th September would be the Delivery Date of the futures contract and the delivery of 500 units of wheat is made by Y (the seller) to X (the buyer) on 30th September. In case of an option contract, it is known as expiration date, the date on which an option contract automatically expires.