Open Interest & Cash Settlement

[sunandaC]

Open position - Outstanding/unsettled long or short position at any point

of time.


Physical delivery - Open position at the expiry of the contract is settled

through delivery of the underlying. In futures market, delivery is low.

Cash settlement - Open position at the expiry of the contract is settled

in cash. These contracts are designated as cash settled contracts.

Index Futures fall in this category.

 

[rosemarry2]

Open position - Outstanding/unsettled long or short position at any point

of time.


Physical delivery - Open position at the expiry of the contract is settled

through delivery of the underlying. In futures market, delivery is low.

Cash settlement - Open position at the expiry of the contract is settled

in cash. These contracts are designated as cash settled contracts.

Index Futures fall in this category.

Hey dear,

Here I am up-loading Role of Cash Settlement in Futures Contract Specification, please check attachment below.