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I believe all futures contracts are cash settled, including precious metals and stocks.
by mercyandgrace 9y ago
I believe all futures contracts are cash settled, including precious metals and stocks.
- chollida1 9y agoThey are not. https://www.danielstrading.com/futures-trading-education/2014/01/03/physical-delivery-vs-cash-settlement https://www.danielstrading.com/futures-trading-education/201... Typically they almsot always were delivered rather than cash settled. Cash settlement is more common for futures on indexes. See here: http://www.cmegroup.com/market-data/reports/cash-settled-futures.html http://www.cmegroup.com/market-data/reports/cash-settled-fut...
- tim333 9y agoFrom your own link (the first one): >It is estimated that only 2% of all futures contracts are actually delivered.
- Idontagree 9y agoAlso from the first link: Popular Physical Delivery futures contracts include (but are not limited to) CME Currencies (Euro, JPY, & GPB), CBOT Treasuries (2 yr, 5yr, 10 yr, & 30 yr), NYMEX Energies (Crude Oil, Natural Gas, RBOB Gasoline, & Heating Oil), CME Live Cattle, CBOT Grains (Corn, Wheat, Soybeans, Soybean Meal, Soybean Oil, Rice, and Oats), COMEX Metals (Gold, Silver, & Copper), and ICE Softs (Sugar, Cotton, Cocoa, Coffee and OJ). There are plenty of physical delivery futures still in existence.
- retube 9y agothat is because futures are rarely held to expiry - They get rolled into the next contract. so even tho physically settled, physical settlement is rare.