How Does the Settlement Process Differ between Cash-Settled and Physically-Settled Futures? ⎊ Path

How Does the Settlement Process Differ between Cash-Settled and Physically-Settled Futures?

In physically-settled futures, the underlying asset is actually delivered from the seller to the buyer upon contract expiration. In cash-settled futures, no physical asset changes hands.

Instead, the difference between the contract price and the final settlement price is paid in cash between the parties. Cryptocurrency futures are often cash-settled.

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

How Does a Cash-Settled Option Differ from a Physically-Settled Option On-Chain?

What Is the Primary Difference between Cash-Settled and Physically-Settled Futures Contracts?

Explain the Difference between Physically-Settled and Cash-Settled Futures Contracts

What Is the Difference between Cash-Settled and Physically-Settled Futures?

What Is the Primary Difference between Cash-Settled and Physically-Settled Futures?

Does the Settlement Process for Cash-Settled Options Differ from Physically-Settled Options at Expiration?

What Is the Primary Difference between a Physically-Settled and a Cash-Settled Futures Contract?

Glossar

Final Settlement Price

Valuation ⎊ The Final Settlement Price in cryptocurrency derivatives represents the agreed-upon value of the underlying asset at contract expiration, crucial for determining payouts in options and futures.

Cryptocurrency Futures Contracts

Leverage ⎊ Cryptocurrency futures contracts represent agreements to buy or sell a specified quantity of a cryptocurrency at a predetermined price on a future date, facilitating exposure without immediate asset ownership.