Physical Delivery
Term in an options or futures contract which requires the actual underlying asset to be delivered upon the specified delivery date, rather than being traded out with offsetting contracts.

Investopedia Says:
Most derivatives are not actually exercised, but are traded out before their delivery date. However, physical delivery still occurs with some trades: it is most common with commodities, but can also occur with other financial instruments.

Related Terms:
Call
Commodity
Delivery Date
Delivery Notice
Derivatives
Futures Contract
Offset
Options Contract
Underlying

• Accordion Feature
• Account
• Accountable Plan
• Accountant
• Accountant's Opinion
• Account Balance
• Accounting
• Accounting Earnings
• Accounting Insolvency
• Accounting Method
• Accounting Noise
• Accounting Period
• Accounting Profit
• Accounting Rate of Return (ARR)
• Accounting Rate of Return (ARR)
• Account Settlement
• Accounts Payable (AP)
• Accounts Payable (AP)
• Accounts Payable Turnover Ratio
• Accounts Receivable (AR)
• Accounts Receivable (AR)
• Accounts Receivable Financing
• Accredited Investor
• Accreting Principal Swap
• Accretion