What does currency circle contract delivery mean?
- 王林Original
- 2024-07-24 12:44:00387browse
Cryptocurrency contract delivery refers to physical or cash settlement when the futures contract expires. There are two main types: physical delivery and cash delivery. The process of contract delivery includes contract expiration, delivery notification, delivery settlement and delivery completion. Contract delivery is crucial to currency futures trading because it ensures price discovery, risk management and market liquidity.
Coin Circle Contract Delivery
What is contract delivery?
Contract delivery refers to the process of physical or cash settlement between buyers and sellers in accordance with the terms of the contract when the futures contract expires. In the cryptocurrency community, contract delivery usually refers to the expiration of a futures contract, when a buyer or seller buys or sells a specific cryptocurrency at an agreed price.
Types of contract delivery
There are two main types of contract delivery in the currency circle:
- Physical delivery: Buyers and sellers actually exchange cryptocurrency assets on the delivery day.
- Cash Delivery: Buyers and sellers settle the contract at an agreed price and does not involve the exchange of actual cryptocurrency assets.
The process of contract delivery
The process of contract delivery is usually as follows:
- Contract expiry date: The futures contract expires, and buyers and sellers have the right to require delivery.
- Delivery Notice: The buyer or seller submits a delivery notice to the exchange.
- Delivery and settlement: The exchange settles the positions of buyers and sellers and settles them in kind or cash according to the terms of the contract.
- Delivery completed: The delivery is successful and the buyer and seller have completed their contractual obligations.
The Importance of Contract Delivery
Contract delivery has the following importance for currency futures trading:
- Price Discovery: Delivery ensures that the futures contract price converges with the spot price of the underlying asset.
- Risk Management: Delivery allows traders to hedge risks, lock in profits or control losses.
- Market Liquidity: Delivery provides market liquidity and improves transaction efficiency.
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