Skip to main content
Learn

What Are the Risks of Using a Single Exchange’s Price for Cash Settlement?

High risk of market manipulation, unfair settlement, and vulnerability to a single platform's technical or liquidity issues.
Greeks.Live24.11.25

What Are the Risks of Using a Single Exchange’s Price for Cash Settlement?

The primary risk is market manipulation, where a large trader could intentionally execute transactions to artificially inflate or deflate the price on that single exchange. This could unfairly benefit or harm participants in the derivative contract.

A single point of failure also exposes the settlement to potential technical glitches or liquidity issues on that specific platform.

Does Settlement Risk Increase or Decrease with the Number of Exchanges Used in the Calculation?
What Is the Risk of “Exchange Isolation” for a Single-Exchange Spot Price?
What Are the Risks of Relying on a Single Data Feed for an Options Smart Contract?
What Are the Risks of Using a Centralized Exchange (CEX) versus a DEX?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.