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What Is the Alternative to Cash Settlement in Futures Trading?

The alternative to cash settlement is physical settlement. In physical settlement, the actual underlying asset or commodity is delivered from the seller to the buyer upon the contract's expiration.

This method is common in traditional commodity futures like oil or gold, but is largely avoided in the cryptocurrency derivatives space due to logistical challenges.

What Is the Difference between Physical and Cash Settlement in Derivatives Contracts?
How Does a Clearing House Handle Settlement for Physically-Delivered Vs. Cash-Settled Futures?
How Does the Concept of “Delivery” Apply to Physically-Settled Bitcoin Futures?
What Is the Difference between Physical and Cash Settlement in Tokenized Derivatives?