after the expiration of stock index futures contracts, trading so the exchange clearing price as a benchmark to settle all outstanding contracts, designated to pay positions of both sides settlement gains and losses. Stock index futures delivery fee of 30 yuan / hand, the exchange can be adjusted according to market conditions.
available to Hong Kong's Hang Seng Index Futures as an example.
cash settlement mode, each open contract will expire settlement, able to automatically open, that is , the expiration date of the contract, the short side without the need to deliver equity portfolio, multi-party, without delivery of the funds of the total contract value, but according to the exchange clearing price to calculate the amount of the profit and loss by gains and losses directly in the profit side and margin account of the loss is between transfer the way to settle the transaction.
delivery settlement price is based on the then prevailing spot price by an agreed way calculated, and thus the way of cash settlement of stock index futures, stock index futures and spot prices inevitable trend together in the contractual maturity date.
, assume an investor in October to 11,000 for the price of futures contracts sold in December for delivery in the Hang Seng efficiency of a hand, not yet open to the end of December, the last trading day. If the contract's final settlement price of 10,000 points, the Closing of the investors profit: (11000-10000) X50 HK $ = HK $ 50000 (without regard to the handling fee). The same circumstances, if the contrary to the direction of the trade, not sell the one hand, but buy 1 lot of the Hang Seng Index contract, the investor a loss of HK $ 50,000.
What is acash settlement
cash settlement with no difference between a liability settled, a day
delivery refers to the last trading of the futures contract provides the future, end in the form of physical delivery futures trading obligations of an open form of open contracts held . Delivery of the main methods of physical delivery and cash settlement two.
cash settlement with the daily settlement of liabilities in essentially the sameWorld Steel Pipe , the difference lies in two things:
specific waycash delivery
settlement price is calculated differentlyWorld Steel Pipe .
cash settlement means to the end of open futures contracts for delivery settlement price to calculate the gain or loss on outstanding contracts, the ultimate way of cash payment to settle the futures contract delivery. This delivery method is mainly used for financial futures and futures the subject matter can not be physical delivery of futures contracts, such as stock index futures contracts. In recent years, some foreign exchanges have also explored the cash delivery in commodity futures. China's commodity futures market does not allow for a cash settlement.
2, a cash settlement after the long and short positions of both automatic write-off, and no liability is settled daily positions of both are retained.