cash settlement

Instead of having the actuals delivered, cash is transferred upon settlement. The CENTER ONLINE Futures Glossary
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The agreement of a buyer and seller to exchange the security and the payment on the same day as the trade. For money market instruments, cash settlement is the delivery of purchased securities against payment in fed funds on the same day that the trade is made.
See settlement. American Banker Glossary
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The process by which the terms of an option contract are fulfilled through the payment or receipt in dollars of the amount by which the option is in-the-money as opposed to delivering or receiving the underlying stock. Bloomberg Financial Dictionary
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Final disposition of open positions on the last trading day of a contract month. Occurs in markets where there is no actual delivery. Chicago Mercantile Exchange Glossary
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In respect of derivatives, the settlement of futures and options contracts for cash instead of settlement involving the physical transfer of goods. Typically used for index-based products such as the FTSE 100 future and option. In respect of securities, the settlement one business day after the day of trade. Dresdner Kleinwort Wasserstein financial glossary
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Final disposition of open positions on the last trading day of a contract month. Occurs in markets where there is no actual delivery. Exchange Handbook Glossary
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1. The cash payment made by the issuer to a warrant holder following the exercise of a warrant. The settlement amount is equal to the intrinsic value, calculated in the manner described in the Pricing Supplement.
2. The process by which the terms of a warrant contract are fulfilled through the payment or receipt in euros of the warrant's intrinsic value. The other possible settlement process is physical settlement. NYSE Euronext Glossary

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cash settlement cash settlement settlement

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   Cash settlement is the most common method of settling financial futures. It involves closing out the position as opposed to physically delivering the underlying financial instrument or commodity. Also used to describe a transaction that settles the same day as the trade day.
   ► See also Futures, Closing a Position.

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cash settlement UK US noun [C] (also cash deal)
FINANCE, STOCK MARKET an agreement to buy shares with money, not with other investments: »

The cash settlement is the largest ever in the municipal bond market.


Financial and business terms. 2012.

Look at other dictionaries:

  • cash settlement — A financial instrument is cash settled if the underlying asset is not delivered or transferred to the counterparty in exchange for a specified payment when the instrument reaches maturity. Instead, the owner of the financial instrument accepts an …   Law dictionary

  • Cash Settlement — A settlement method used in certain future and option contracts whereby, upon expiry or exercise, the seller of the financial instrument does not deliver the actual but transfers the associated cash position. For sellers not wishing to take… …   Investment dictionary

  • cash-settlement — The investor receives cash if the covered warrant can be exercised profitably at expiry. The gain achieved on the warrant is transferred to the holder without the holder having to enact a buy or sell trade. London Stock Exchange Glossary …   Financial and business terms

  • cash settlement — Fin [m1]1. an immediate payment on an options contract without waiting for expiration of the normal, usually five day, settlement period 2. the completion of a transaction by paying for securities …   The ultimate business dictionary

  • Cash settlement — Mit Barausgleich, auch Cashsettlement genannt, wird die Zahlung von Geld anstelle von Sachwerten oder Wertpapieren verstanden. Einen Barausgleich gibt es beispielsweise bei Optionsscheinen. Anstelle der Lieferung oder Abgabe der Wertpapiere, auf… …   Deutsch Wikipedia

  • Cash settlement contracts — Futures contracts, such as stock index futures, that settle for cash, not involving the delivery of the underlying. The New York Times Financial Glossary …   Financial and business terms

  • cash settlement contracts — futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying. Bloomberg Financial Dictionary …   Financial and business terms

  • Settlement — steht für Settlement (Finanzwesen) Cash settlement Finanzbegriff Permanent Settlement, Steuerbegriff Siehe auch Act of Settlement Latin Settlement The Settlement Selkirk Settlement Settlement Indians …   Deutsch Wikipedia

  • cash deal — ➔ deal2 * * * cash deal UK US noun [C] (also cash settlement) ► FINANCE, STOCK MARKET an agreement to pay for shares with money, not by using other investments: »Just minutes after they unveiled a cash deal worth 370p a share, venture capitalists …   Financial and business terms

  • settlement — The clearinghouse practice of adjusting all futures accounts daily according to gain or loss from price movement is generally called settlement. The CENTER ONLINE Futures Glossary (1) Noun The standard number of days between the date that a… …   Financial and business terms

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