DELIVERY MONTH Meaning and
Definition
-
A "delivery month" refers to a specific period during which a financial or commodities contract can be fulfilled or settled by delivering the underlying asset. In various financial markets, including commodities, stocks, and derivatives, contracts are often traded with future settlement dates. Each of these contracts specifies a particular month in which the buyer is entitled to receive the asset or commodity.
Typically, these delivery months are designated in a standardized manner, such as using alphabetic codes for different months. For instance, the delivery months for futures contracts related to agricultural commodities like corn or wheat may use codes such as F for January, G for February, H for March, and so on. This standardized system ensures that market participants can easily identify the specific month associated with a contract's delivery obligation.
It is important to note that most traders in futures or derivatives markets do not hold contracts till the delivery month. Instead, they engage in speculative trading to profit from price fluctuations without intending to take delivery of the underlying asset. Thus, the primary purpose of the delivery month is to provide a framework for physical settlement if the contract is indeed held till expiration.
Overall, delivery month acts as a vital reference point for futures and commodities contracts, enabling market participants to conduct informed trading while providing clarity on the settlement period.
Common Misspellings for DELIVERY MONTH
- selivery month
- xelivery month
- celivery month
- felivery month
- relivery month
- eelivery month
- dwlivery month
- dslivery month
- ddlivery month
- drlivery month
- d4livery month
- d3livery month
- dekivery month
- depivery month
- deoivery month
- deluvery month
- deljvery month
- delkvery month
- delovery month
- del9very month
Etymology of DELIVERY MONTH
The word "delivery" originated from the Old French word "delivrer", which means "to set free" or "to relieve". It comes from the Latin word "dēlīberāre", consisting of "dē" (meaning "away") and "līberāre" (meaning "to free"). In this context, "delivery" refers to the act of bringing or sending something to a particular destination.
The word "month" originated from the Old English word "mōnaþ", which is related to the Old High German word "manod" and the Gothic word "mēnaþs". The term "mōnaþ" literally translates to "moon", as the lunar cycle played a significant role in the measurement of time in ancient societies. Over time, "mōnaþ" evolved into "month" in Middle English.
