Options Glossary

Glossary: Cash Settlement / Cash Delivered

Last Updated: July 12, 2015


Cash Settlement / Cash Delivered

What Does Cash Settlement / Cash Delivered Mean in Options Trading?

When the right of an option was exercised by the investor, proceeds are delivered in a cash settlement rather than the underlying asset. The investor does not take physical possession of an underlying in this case, but conveniently receives a cash transfer equivalent to the strike price of the option.

Related Options Trading Terms

homeusercrossmenuarrow-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram