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Commodity Futures Contracts (Physical Settlement) Settlement Method
Commodity Futures Contracts (Physical Settlement) Settlement Method
Commodity Futures Contracts (Physical Settlement) Settlement Method
- For the period up to the last trading day, the Commodity Futures Contracts (physical settlement) are settled through offsetting purchase or sale.
* There will be a payment/receipt of the mark-to-market differences during the period from the trade execution to the settlement. - If no offsetting purchase or sale took place by the last trading day, there will be a settlement by delivery, that is an exchange of the goods or warehouse receipts and the delivery payment.