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What Is the Term for the Mandatory Settlement of a Cash-Settled Futures Contract?

The mandatory settlement of a cash-settled futures contract is called Final Settlement or Expiration Settlement. At this point, the difference between the final settlement price (usually an average of the underlying index price over a set period) and the contract's entry price is paid or received in cash, and the contract ceases to exist.

There is no physical delivery of the asset.

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