Chapter 01 · Section 1.1

Delivery

                   Forwards             Futures

Contract Terms     Variable             Standard
Delivery           Expected             ........
Trading            ........             ........
Margins            ........             ........
Credit Risk        ........             ........
Liquidity          ........             ........
Cash Flow          ........             ........

With futures contracts

• a) most of them result in delivery.
  No. Not in futures. The basic feature of futures contract is the easy way to get rid of your obligations: if you have bought futures, you can always sell them later at the prevailing market price, and vice versa.
  b) none of them result in delivery, because the market is used only by investors.
  c) only 2-5% usually result in delivery.
  d) only 20-30% usually result in delivery.

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