Does commodity trading and or commodity futures trading ever make you take delivery of a commodity itself?
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Would you ever have to go pick up some wheat and try to find a place to store it for instance? I have heard there are horror stories like this? Any truth to this rumor?
If it is not a cash-settled future, and you keep your position until expiration, you will indeed have to take delivery of (or deliever) the actual comodity at expiration.
However, you are never required to keep a position open until expiration. So, if you take a minimal amount of care and close your positions before expiration, you will never have to deal with the acutal underlying commodity.
To learn more you might want to take the tutorials at
http://www.cbot.com/cbot/pub/page/0,3181,492,00.html
One Response to “Does commodity trading and or commodity futures trading ever make you take delivery of a commodity itself?”
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February 2nd, 2010 at 5:41 pm
If it is not a cash-settled future, and you keep your position until expiration, you will indeed have to take delivery of (or deliever) the actual comodity at expiration.
However, you are never required to keep a position open until expiration. So, if you take a minimal amount of care and close your positions before expiration, you will never have to deal with the acutal underlying commodity.
To learn more you might want to take the tutorials at
http://www.cbot.com/cbot/pub/page/0,3181,492,00.html
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