Folks, pardon me for a very novice question. Is there a list of like which futures are cash settled (instead of actual delivery settled) ? I have been trading ES emini with a decent success rate. I also wanted to complement it with other instruments. Particularly CL crude oil. Are CL cash settled ? Also, how about NG - are they cash settled too ? It was surprising for me that there is no such list on internet which tells me which contracts are cash settled and which not Thanks for your help..
There's no list because for most people it doesn't matter. You wouldn't be allowed to take them to delivery. CL NG RBOB HO and CME metals are all physical delivery. Even treasury futures are physically settled Ice has a Brent and wti that have an option to be financially settled. If your broker allows you to trade through the settlement they expect you to know what you are doing and be prepared to deliver or take delivery. I've accidentally gone through this many times. But as I said, usually your broker will track this for you and close your position if you get too close to delivery.
Thank you so much for the detailed reply. So sounds like as long as i close my position before the expiry, i should be good.. right ? meaning it will practically be cash settled for me. I am going to do intraday and wont hold it longer. So if close my intraday position before 10 am PST on the expiry, i would not have to deal with deliver etc right ?
Well, isn't this total crap on their part? Maybe we'd like to hold a physically-delivered underlying until the Last Trade Date? Who is the broker to dictate to us our trading plan?
Agree with gar...just make sure it's liquid enough to get in and out within your plan and close in plenty of time before expiration.
Some FCMs have the facilities in place for delivery and some don't. The ones that do, will warn you every day for weeks before the last trading day. Most online brokers do not allow delivery like TD and IB, so they have a to have a close out process. I've had customer accounts at ADMIS, FC Stone and Wedbush. Each can facilitate delivery of many products. Bob
Hmmm. I don't understand that part of the process, and would be fascinated to learn. Why would the broker/FCM be the one burdened with the responsibility of arranging delivery of (or reception of) a physical? Wouldn't that be incumbent on the actual future contract holder? Or is the FCM acting on "behalf" of the account holder, and so the FCM must arrange the deliveries?
I think you would be labeled a PITA. The Deliveries department, if at all, is probably some guy who plays cards all day.