Feature Initials Settlement For Free

A futures contract may either be settled through cash or physical delivery. In the case of physical delivery, the holder of the contract will either have to take the commodity from the exchange or produce the commodity.

Most options and futures contracts are cash-settled. However, an exception is listed equity options contracts, which are often settled by delivery of the actual underlying shares of stock.

Upon expiration, in the money Quarterly options will deliver the respective underlying futures contract, which immediately settles to the cash value of the SOQ.

Similar to the expiration date, the final settlement time varies by product. For example, natural gas options on futures cease trading at p.m. ET, when the outright futures contract settlement price is determined. However, the Monday weekly options on futures for the E-mini S&P 500 expire at 4 p.m. ET.

On the expiry of the futures contracts, NSE Clearing marks all positions of a CM to the final settlement price and the resulting profit / loss is settled in cash. The final settlement of the futures contracts is similar to the daily settlement process except for the method of computation of final settlement price.

For example, if a trader sells a futures contract at Rs. 100 and the market price on the expiry date is Rs. 90, the trader will receive Rs. 10 as cash settlement.

This physical delivery settlement process is carried out for all the stock derivatives (futures and options). However, index options such as NIFTY, FINNIFTY, and BANK NIFTY are settled on a cash basis only.

Futures contracts trade on a futures exchange and a contract's price settles after the end of every trading session.

Settlement involves exchanging funds between the two banks, while clearing can end without any interbank money movement. In the clearing process, funds move between the recipient's or sender's bank account and their bank's reserves.

A DTC, short for Diagnostic Trouble Code, is a code used to diagnose malfunctions in a vehicle or heavy equipment. While the malfunction indicator lamp (MIL)?also known as the check engine light?simply alerts drivers that there is an issue, a DTC identifies what and where the issue is.