Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• DELIVERY CHARGES
  
  Is used several ways. It refers to the amount of expense entailed in making or taking a delivery on the futures or cash markets. Also, it is used to reflect the fact that there may be additional risks associated with holding the nearest month in commodity futures contracts. These risks can be potential squeezes, lack of good delivery storage, transportation problems, and other impediments to a smooth and orderly market. To cover for these contingencies, a Delivery-Month Charge will be assessed for the calculation of margins or performance bonds.
  
  Back