In this article, We learn about “Delivery Date “.Let’s Go!
Delivery Date , also known as Settlement Date or Value Date , refers to the specific date on which the investment contract must be completed.
Companies that use financial instruments such as forward or futures contracts to protect their foreign currency transactions from currency risk must adhere to the delivery dates specified in the contract.
In futures trading, the delivery date refers to the date when the stocks or commodities involved in the futures contract are transferred to investors.
In other words, the delivery date is also the expiration date of the futures or forward contract.
Some futures contracts may require physical delivery of the commodity.
In this case, they can specify the delivery month, which is the month in which the seller must deliver the underlying asset and the buyer must pay.
In this case, the contract terms may also define the place of delivery.
Futures contracts (bonds, stocks, foreign exchange, stock indexes) traded in the U.S. exchange market generally have quarterly delivery dates, which are March, June, September and December.
In currency forward contracts, which are over-the-counter trading agreements, the delivery date and price of the asset are privately agreed upon by the two parties involved.
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