A transaction settled with a cash payment in the amount of profit or loss rather than the physical delivery of a commodity or other underlier. Examples include futures and options contracts for indices, which cannot be delivered.
Related information about cash settlement:
- Cash Settlement Definition | Investopedia
A settlement method used in certain future and option contracts whereby, upon expiry or exercise, the seller of the financial instrument does not deliver the actual ...
- Cash settlement
This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. Cash Settlement is...
- What is cash settlement? definition and meaning
Definition of cash settlement: A transaction settled with a cash payment in the amount of profit or loss rather than the physical delivery of a commodity or other ...
- Cash Settlement - Financial Dictionary - The Free Dictionary
The process by which the terms of an option contract are fulfilled through the payment or receipt in dollars of the amount by which the option is in-the-money as ...
- What is Cash Settlement?
Brief and Straightforward Guide: What is Cash Settlement?
- Cash Settlement - Minneapolis Grain Exchange
As applied to futures trading, cash settlement means to offset an outstanding futures obligation with a cash transfer, rather than a physical one. National Corn ...
- Physical Settlement, Cash Settlement
Certain derivative instruments, such as forwards and options, provide for the purchase or sale of some underlier. In many cases, parties to such derivatives don't ...
- The Role of Cash Settlement in Futures Contract Specification
Cash settlement is a device used instead of physical deliveries to fulfill ... In 1981, cash settlement was first applied to trading futures contracts in Eurodollar time ...