What is physical delivery?Physical Delivery

At expiry the short delivers the goods to a designated warehouse and the long pays the final settlement price to take them; most commodity futures work this way.

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Futures Basics
Delivery and Settlement Price
How does a contract wrap up at expiry: physical delivery, cash settlement, or closing early? And how is each day's settlement price worked out?

Related terms

mark-to-market
settlement price
last trading day
cash settlement

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