cash settlement

When a deal ends by paying the money difference instead of handing over the actual thing.

The fuller meaning

Settling a futures or options contract by paying the difference between the trade price and the final settlement price, with no delivery of the underlying. Index futures such as the E-mini S&P 500 are cash-settled; physically delivered contracts, like US crude oil, can behave very differently near expiry.

cash settlement, also called cash-settled.

cash settlement

The fuller meaning

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