How Are Options Settled?
In the US, excahnge traded options are settled using stock-type settlement and this can potentially create cash flow issues when trading option on futures since futures are settled using futures-type settlement. Outside North America, option settlement is normally simplified to match with the underlying settlement style, meaning futures options are settled using future-type settlement.
Configure Trades (up to 5 days)
Day 1 opens the trade. Day 5 closes any remaining position automatically (you may still set the price). Leave "Shares" as 0 for no trade on a given day.
Configure Trades (up to 5 days)
Sell contracts to go short; buy contracts to go long. Day 5 closes any remaining position automatically. Leave "Contracts" as 0 for no trade on a given day.
The Clearing Process
Step through the clearing workflow to see how a trade moves from execution to official settlement.
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