3 ms·
Physical settlement is relativement rare in those markets. The main purpose of the transactions there is not to get physical delivery at expiration, let alone
by kgwgk 6y ago
Physical settlement is relativement rare in those markets.
The main purpose of the transactions there is not to get physical delivery at expiration, let alone two days after the transaction. Many contracts are cash settled and if not you can always close positions right before expiration (and maybe roll them over).
When someone buys a stock very often the purpose is to "physically" have it as soon as possible.
- eru 6y agoYes, people do often take delivery of stocks. Though funny enough, stocks are already a virtual thing and exist in computers only. Whereas oil or onions are physical goods, and there are real consumer who absolutely need real physical onions.