First Notice Day
Chapters in this video
- 0:00 Trey the Trader and the wheat delivery nightmare
- 1:19 First notice day defined: the deadline to beat
- 1:41 Fiona the Farmer vs. Trey: who holds the power
- 2:55 Exam trap: the long does NOT declare delivery
- 3:40 Delivery month timeline: FND before last trading day
- 4:03 Trey's escape plan: offset before first notice day
- 5:14 Memory aid: flat before first notice day
- 6:10 Rapid-fire exam recap
What this video covers
- What first notice day (FND) is: the first day notices of intent to deliver the actual commodity can be issued from shorts to longs
- Why the short, not the long, initiates delivery and controls timing, deliverable grade, and approved delivery location within contract rules
- Why the long is a passive recipient who can be assigned a delivery notice and obligated to take physical delivery
- The critical distinction that a long must offset by selling before first notice day, not on or after it, to avoid delivery assignment
- Why the last trading day is not the safe deadline for a long who wants out, since delivery machinery begins operating at FND
- The "flat before first notice day" memory aid and what being flat means in terms of open positions
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 3 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.