The specific type and quality of a financial or physical ASSET that can be delivered under the terms of an EXCHANGETRADED DERIVATIVE. Many contracts provide the selling party with the ability to select from a range of deliverable assets. Also known as DELIVERABLE GRADE. See also CHEAPEST TO DELIVER, CONVERSION FACTOR. DELIVERABLE GRADE See DELIVERABLE ASSET. DELIVERY The physical provision of an ASSET underlying a financial contract, generally associated with EXCHANGETRADED DERIVATIVES (though also applicable to certain OVERTHECOUNTER DERIVATIVES, particularly those involving commodities). The selling party typically announces its intent to make delivery through a delivery note, which provides details regarding the asset and location.

More On This Topic

Link to This Definition
Did you find this definition of DELIVERABLE ASSET helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary