At expiry a cash-settled future pays a last variation margin against a final settlement price and disappears. A physically delivered future obliges the short to deliver, and the long to receive and pay for, the underlying, under the exchange’s delivery rules: grade, location, dates, and, for bond futures, a choice among deliverable issues.
Quantitative Finance · Glossaire
Qu'est-ce que « Cash settlement and physical delivery » ?
Aussi appelé : cash settlement · physical delivery