Futures · Pro
Cash settlement
What does Cash settlement mean?
Cash settlement resolves a derivative at a defined settlement value through a monetary adjustment rather than delivery of the underlying asset.
Example
An expiring index contract settles against its specified final reference value.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Do not assume a product is cash-settled simply because a trading platform displays prices in cash terms.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.