What does Delivery Month mean?
The specified month in which the delivery of the underlying of a future contract is to be made. The delivery needs to be made within this month as per the terms of the futures contract. The seller must deliver and the buyer must accept and pay for the same to fulfill the contract. Delivery Month is also known as Contract Month.
Futures Knowledge Explains Delivery Month
The futures contract requires delivery of the underlying on a date known as Delivery Date which falls in the Delivery Month. For example, two parties X (the buyer) and Y (the seller) enter into a futures contract which expires on 31st March. Then, 31st March would be the Delivery Date and the month of March would be the Delivery Month.