What Is the Concept of "Synthetic Exposure" Provided by Cash-Settled Derivatives? ▴ Learn

What Is the Concept of “Synthetic Exposure” Provided by Cash-Settled Derivatives?

Synthetic exposure means gaining the financial benefits (or risks) of holding an asset without actually owning or taking physical possession of it. Cash-settled derivatives allow a trader to profit from the price movement of Bitcoin, for example, without the need for custody, wallets, or managing the physical asset.

What Is the Main Difference between a ‘Cash-Settled’ and ‘Physical-Settled’ Option?

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

What Is the Difference between Physical and Cash Settlement in Derivatives Contracts?

How Does the Legal Concept of Ownership Transfer Apply to a Tokenized Asset?