cash settlement

Lump sum payment

Cash settlement is a method of resolving a financial contract by paying the difference in value rather than delivering the underlying asset.

In derivatives trading, futures and options often settle in cash rather than requiring actual delivery of commodities or securities: The index futures contract uses cash settlement since you can't deliver "the market".

Insurance claims may also be cash settled when the insurer pays money rather than replacing or repairing property.

Related

expiration · closing price · spot price · stock index · index · clearinghouse · contract · liquidation · financial · money · payment · finality · broker · trading desk · margin · reconciliation · arbitrage · hedge

Categories
Opposites
payment timing and structure

cash settlementinstallment plan

Periodic payment arrangement

payment plan · deferred payment · installment payments · structured settlement · periodic payments

settlement method

cash settlementbarter

Direct goods-for-goods exchange

transaction completion status

cash settlementoutstanding balance

Sum still due

open position · default · non-payment · arrears

Family

cash, settlement, cashed, cashing, settle, settled, settling, settler, settlers

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