How can futures contracts be settled? 4 Articles

by Eric Reitman

There are two basic ways that futures contracts can be settled: with cash or with physical delivery. There may be numerous technical differences in settlement options depending on the instrument (the contract) and the exc...read more

by Babu

The settlement of future contracts can either be settled by delivering the asset physically on the agreed date by the party with the short position or the contracts can be settled in cash. Some contracts have to b...read more

by Saurabh Sodhi

Whether the method used is pit trading or electronic trading, a transaction only takes place when opposite parties to the transaction agree on a price. One party agrees to take on a long position (agrees to buy the und...read more

by Camilla Persson

There are many types of derivatives on the financial markets and future contracts are one of them. They are standardized contracts which are used to buy or sell a specific underlying asset at a specific date in the future....read more