What is Physical Settlement?
Physical Settlement (also called cash settlement) — How stock F&O is settled at expiry — in-the-money stock derivatives are settled by actual delivery of shares, not just cash.
In simple terms
Hold an ITM stock option to expiry and you must take/give delivery.
Why Physical Settlement matters when you invest
Understanding physical settlement helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Physical Settlement — frequently asked questions
What is Physical Settlement?
How stock F&O is settled at expiry — in-the-money stock derivatives are settled by actual delivery of shares, not just cash.
What does Physical Settlement mean in the stock market?
How stock F&O is settled at expiry — in-the-money stock derivatives are settled by actual delivery of shares, not just cash. Hold an ITM stock option to expiry and you must take/give delivery.
Can you give an example of Physical Settlement?
Hold an ITM stock option to expiry and you must take/give delivery.
Put it into practice — open a free account.
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