Forward Delivery

Forward delivery goes hand-in-hand with forward contracts, which are contracts done in advance (thing being traded, price, delivery date) off of any exchange. Forward delivery is the delivery stage being enacted as a result of a forward contract.

Basically, forward delivery is when the thing is delivered by the seller and the buyer pays up...pretty simple. The alternative to forward delivery is called a “cash settlement,” which is an option where the contract can expire and the seller gives cash instead of the good. If this happens, it’s all in the contract already.