Atlas / Glossary / Cheapest to deliver (CTD)Cheapest to deliver (CTD) The bond a futures short would rationally deliver, once conversion factors are applied. A bond future tracks its CTD, and the right to switch is a real option held by the short.
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Where Cheapest to deliver is explained in depth The definition above is the short version. These pages put it to work, in the order they use it most:
Calculators that compute it Terms this definition uses The whole glossary
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