So when I trade in cattle futures I can expect a trailer full of cows pull up to my house? ðŸ¤
Not unless you are registered as a commercial trader. And then you have to arrange your own delivery from the contract delivery warehouse/yard location. This isn’t Carvana, click and it shows up in the driveway:)
If you don’t exit the position, you will get a call about delivery.
Now commodity guys are often LOOKING to have the delivery. That is the point. But what gets interesting is sometimes a “paper trader” gets stuck. Remember the negative oil prices? They had to take delivery, but were full. So they paid storage costs that were higher than the contract.
Which isn’t a big deal of you need to commodity and will add value beyond it.