When is futures delivery?

Futures delivery in finance refers to the process of fulfilling the terms of a futures contract by delivering the underlying asset or cash settlement on the specified delivery date. This date is determined at the time the futures contract is entered into and is typically the final day of trading for that particular contract. The delivery date for futures contracts varies depending on the specific contract and the underlying asset being traded. For example, for commodity futures, such as oil or gold, the delivery date may coincide with the expiration of the contract, which is often the last business day of the month. In the case of financial futures, such as stock index futures or interest rate futures, the delivery date may also be the last trading day of the contract, which is typically a specific date agreed upon by the parties involved in the contract. It's important to note that not all futures contracts result in physical delivery of the underlying asset. Many contracts are settled in cash, where the parties agree to exchange the difference in the contract price and the market price of the underlying asset at the time of expiration. This is known as cash settlement and is often used in financial futures contracts. Overall, futures delivery in finance is a crucial aspect of the futures market, as it allows traders to hedge against price fluctuations and manage their risk exposure. By understanding the delivery date and terms of a futures contract, traders can effectively plan for the fulfillment of their contractual obligations.