Making delivery

Refers to the seller's actually turning over to the buyer the asset agreed upon in a forward contract.

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Taking delivery
Refers to the buyer's actually assuming possession from the seller of the asset agreed upon in a forward contract or a futures contract.

Overnight delivery risk
A risk brought about because differences in time zones between settlement centers require that payment or delivery on one side of a transaction be made without knowing until the next day whether the funds have been received in an account on the other side. Particularly apparent where delivery takes place in Europe for payment in dollars in New York.

Cash delivery
The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset.

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Capital rationing

Placing one or more limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on parts of, and/or the entirety of, the capital budget.


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