Taking delivery

Taking delivery
Refers to the buyer's actually assuming possession from the seller of the asset agreed upon in a forward contract or a futures contract. ...

Taking Delivery
Banking Dictionary:
Taking Delivery
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Taking Delivery
Procedure whereby the buyer's broker accepts receipt of security certificates from the seller's broker.
See: Certificate; Delivery ...

Taking delivery
When the buyer actually assumes possession from a seller of assets agreed upon in a forward contract or a futures contract.

Covering a futures market short position by purchasing an offsetting long position, or taking delivery of securities or commodities.
Securities.

Take or Pay
A provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount.

With an option, you are not bound to take delivery. If you choose, you may decide against taking delivery and let the option 'lapse'.

This is delivery based trading system which is generally done with the intention of taking delivery of shares or money. In Cash trading, the clients can buy or sell only when he satisfies some conditions.

Most futures traders avoid taking delivery by closing out positions before the delivery month begins.

Speculating is trading aimed at making a profit as prices change. A speculator has no interest in actually taking delivery of an asset.
Spin-off ...

Requiring some price movement or concession on behalf of the initiating party before a trade can be consummated. See: Price give.
Taking delivery ...

seller whereby the buyer acquires the right, but not the obligation, to sell a specified stock, commodity or cash index at a predetermined price on or before a predetermined date. The seller of the option assumes the obligation of taking delivery of ...

It represents the quantity of contracts which are subject to offset by either liquidation of long positions, covering of short positions or making and taking delivery. Sometimes referred to as commitment or open commitment.

The seller assumes risks and costs up to arrival at the named destination, at which time the buyer, upon taking delivery of the goods, assumes all risks and responsibilities for the unloading and clearance of the goods.

Because the stock market had subsequently declined, the clients trying to avoid taking delivery-they complained that certificates were in the wrong denomination, not properly document or in physically unacceptable condition.

See also: Forward contract, Overnight, Cash value, Settlement Date, Expense