Skip to main content
Learn

What Is the Difference between Physical Settlement and Cash Settlement for a Bitcoin Option?

Physical settlement delivers actual Bitcoin; cash settlement exchanges only the net monetary difference.
Greeks.Live14.11.25

What Is the Difference between Physical Settlement and Cash Settlement for a Bitcoin Option?

Physical settlement requires the seller of the option to deliver the actual underlying asset, Bitcoin, to the buyer upon exercise. Cash settlement, conversely, involves the exchange of only the cash difference between the option's strike price and the current market price of Bitcoin at expiration.

Cash settlement is generally simpler and avoids the logistical complexity of asset transfer.

What Is the Process of Physical Settlement versus Cash Settlement in Crypto Derivatives?
What Is the Difference between Physical and Cash Settlement in a Smart Contract Derivative?
What Is Settlement Risk in Cross-Border Transactions?
Can a Perpetual Swap Be Physically Settled with Crypto?

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.