Delivery Date

The delivery date, also known as the settlement date or value date, refers to the specific date on which an investment contract must be completed.

Companies using financial instruments like forwards or futures contracts to protect their foreign currency transactions from currency risk must meet the delivery dates established in the contracts.

In futures trading, the delivery date is the day on which the shares or commodities underlying the futures contract are to be transferred to the investor.

In other words, the delivery date is also the maturity date of a futures or forward contract.

Some futures contracts may require the physical delivery of a commodity.

In this case, they can specify a delivery month, which is the month in which the seller must deliver the underlying asset and the buyer has to pay for it.

In such instances, the terms of the contract may also define a delivery location.

Futures contracts traded on US exchange markets (bonds, stocks, foreign exchange, and stock indexes) generally have quarterly delivery dates in March, June, September, and December.

In currency forward contracts, which are over-the-counter agreements, the delivery date and the price of the asset are agreed privately between the two parties involved.

Related Terms

Forwards

A forward contract involves an agreement between two parties to buy or sell an underlying asset at a predetermined price on a specified future date.

Currency Forward

A currency forward is an agreement that locks in an exchange rate the day on which the agreement is signed for a transaction that will be completed later.

International Monetary Market (IMM) Date

The IMM Date refers to specific dates in the futures markets, particularly for financial instruments like currency futures, interest rate futures, and other derivatives traded on the International Monetary Market.

Futures

A futures contract is a type of financial derivative that obligates the buyer to purchase an underlying asset at a specified price and on a specified future date

Perpetual Futures

Perpetual futures are a type of derivative contract that allows traders to speculate on the future price of an underlying asset without an expiration date.