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Why the proportion of futures contracts resulting in delivery is so low?

April 26, 2017contracts DELIVERY Futures low proportion

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Why the proportion of futures contracts resulting in delivery is so low?

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The reason is, futures contracts may not be suitable for merchandising purpose, mainly because these are standardized contracts; hence various aspects of the contracts, viz., quality/grade of the goods, packing, place of delivery, etc. may not meet the specific needs of the buyers/sellers.