Cash settlement
Cash settlement closes out a contract's settlement obligations through a monetary payment calculated under its rules, rather than delivery of the underlying asset. The calculation typically uses a specified reference price and contract size, with any previous settlement payments taken into account.
In a hypothetical cash-settled contract with no prior payments, a 10-point gain at USD 2 per point produces a USD 20 payment before costs.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure