Cash Delivery

At the end of a board game, everyone has a good laugh and goes home. At the end of a futures or options contract, there’s a cash delivery (laughter contingent on whether things went as you speculated or not).

When all is said and done, the cash delivery is the way buyer and seller settle up with each other at the end of futures and options contracts.

Sometimes the underlying assets are delivered, but more often in our modern day-and-age, a cash settlement is the way to go. In the same way that gift cards make gifts easier, cash delivery makes futures and options contracts easier. Because...everyone likes cash.