Give an Example of a Commodity Futures Contract That Is Primarily Cash-Settled ▴ Learn

Give an Example of a Commodity Futures Contract That Is Primarily Cash-Settled.

A prime example is the WTI Crude Oil (West Texas Intermediate) futures contract offered by ICE Futures. While the main NYMEX WTI contract is physically settled, ICE offers a cash-settled version.

More commonly, financial index futures like the S&P 500 or VIX futures are also considered commodity derivatives in a broad sense and are cash-settled. Another clear example is futures on certain non-storable commodities like electricity.

How Does a Cash-Settled Futures Contract Differ from a Physically-Settled One in This Context?

What Is the Significance of the VIX Index in Relation to Implied Volatility and Market Risk?

What Is the Relationship between the VIX Index and Implied Volatility?

What Is the Difference between a “Physical Settlement” and a “Cash Settlement” for Electricity Futures?