In the process of futures trading, if the expired contract is not delivered, it will be regarded as a breach of contract, and the exchange will auction the customer's position sheet, and the auction loss will be borne by the customer. If the auction fails, the exchange will impose a penalty on the customer, which is about 20% of the contract value.

What is futures delivery?

Futures delivery refers to the process that when a futures contract expires, both parties to the transaction settle the expired open contract by transferring the ownership of the goods contained in the futures contract.

Mode of delivery

There are two delivery methods: cash delivery and physical delivery: cash delivery refers to the expiration date of the contract, which calculates the profit and loss of the difference between the buying and selling price and the settlement price on the expiration date, and settles the profit and loss to the corresponding party respectively, and the period does not involve the physical delivery of the target; Physical delivery refers to the expiration date of the contract, when the seller delivers the corresponding goods to the delivery warehouse designated by the exchange according to the quality and quantity, and the buyer delivers the corresponding money to the exchange to fulfill the futures contract. General financial securities futures contracts are mainly cash transactions, and commodity futures contracts are mainly physical delivery.