Settlement (finance)

With cash settlement, also called cash settlement, payment of money is understood instead of property and securities.

A cash settlement there is for example the case of warrants. In place of delivery or delivery of the securities on which the warrant is based, is only a balance between the established financial market security price and the date stated in the warrant exercise price (strike). In this case, as determined in the Warrant Ratio is observed.

For non- traded goods in the financial market, the determination of an accepted by all sides, " course" turns out to be not objective solvable problem of valuation, which is why a cash settlement is not at all or only by subsequent negotiations possible.