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s delivery mandatory in commodity futures contract trading?

April 26, 2017commodity DELIVERY futures contract mandatory trading

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s delivery mandatory in commodity futures contract trading?

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No. It’s not mandatory. However there is always a provision for delivery in commodity futures trading to ensure that the future prices are in conformity with the underlying. The right for delivery is normally with the seller; the buyer/seller has to express his intention for delivery about five to seven days before the expiry. However provisions vary from exchange to exchange. The market lot for delivery is normally different (higher than the trading lot). The contracts which are not assigned for delivery will be settled in cash.