Delivery Definition. Delivery denoted by a forex trade where both sides make and take actual delivery, whether physical or electronic, of the respective currencies traded, including the legal transfer and receipt of ownership rights. Cash Delivery is the same-day settlement of a currency trade in the forex market. This means that delivery and settlement of the transaction occur on the same date that the currency trade is made. In order for this to occur, the forex position must be opened and closed within the same trading day. When you place an order in the forex market, the trade is executed shortly afterward, but the settlement of trades typically occurs at a later time. The trade details are then entered into the books and records of the trading parties. However, for Cash Delivery, everything happens in one day. Special rules also may apply to futures contracts that stipulate that the net cash value of the position, not the underlying asset, be transferred instead to the appropriate party.
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