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Finance Dictionary and Glossary of Investment Terms
The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset.
A requirement of certain futures contracts that the underlier should not be delivered to the buyer at maturity, and instead the value of the underlier should be paid out. Cash delivery often occurs when the asset is difficult or impossible to deliver, such as in the case of a stock index. also called cash settlement.