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What does cash settlement mean?

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cash settlement
Noun

1. The exchange of the cash value difference between the current market price (spot price) of the underlying asset and the settlement price on the final settlement date of a futures contract by the buyer and seller as specified in the contract.
2. The amount paid by the protection seller to the protection buyer in a credit default swap (CDS) equal to the difference in the market value of the specified reference security and its par value.

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