Define: Cash Settlement

Business, Legal & Accounting Glossary

Definition: Cash Settlement


Quick Summary of Cash Settlement


A cash settlement is a payment in cash for the value of a stock or commodity underlying an options or futures contract upon exercise or expiration.



What is the dictionary definition of Cash Settlement?

Dictionary Definition


A cash settlement is a settlement method used in certain futures and options contracts where, upon expiration or exercise, the seller of the financial instrument does not deliver the actual (physical) underlying asset but instead transfers the associated cash position.


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https://payrollheaven.com/define/cash-settlement/
Modern Language Association (MLA):
Cash Settlement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/cash-settlement/.
Chicago Manual of Style (CMS):
Cash Settlement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/cash-settlement/ (accessed: April 05, 2020).
American Psychological Association (APA):
Cash Settlement. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/cash-settlement/

Definition Sources


Definitions for Cash Settlement are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 1st April, 2020