Delivery versus payment

Delivery versus payment is like a trade between two people. Imagine you have a toy car that you want to exchange for a candy bar.

Now, here's the thing: You want to make sure you get the candy bar before you give away the toy car. And the candy bar person wants to make sure they get the toy car before they give away the candy bar.

This is where 'delivery versus payment' comes in. It means that you agree to give the toy car and the candy bar at the same time. This way, there's no risk of one person giving away their thing and not getting the other one in return.

It's like playing a game of 'swap' where you exchange things at the same time, instead of just giving away one thing and then hoping to get the other later.

Delivery versus payment is used a lot in finance and trading too. When people buy and sell stocks, they use delivery versus payment to make sure everyone gets what they traded for. So, the seller only delivers the stocks when they get the payment, and the buyer makes the payment only when they get the stocks.

Overall, delivery versus payment is a way to make sure that trading is fair and safe for everyone involved.