Business and Personal Finance Dictionary

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• STOCK-TYPE SETTLEMENT
  
  A settlement pro c e d u re in which the purchase of a contract requires immediate and full payment by the buyer to the seller. In stock-type settlement, the actual cash profit or loss from a trade is not realized until the position is liquidated. Exchange options have this type of settlement procedure, which differs from that in the futures market w h e re gains and losses are realized on a daily basis.
  
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