Some commodities futures contracts are resolved in cash, while others are settled physically. In this page, you can see the settlement type and the last dates of trading commodity contracts in trading portals.

Learn more about the many methods of settlements for commodities futures and options contracts in the sections below:

Futures MCX's commodity contracts can be settled in one of two ways. They are as follows:

1. Cash Settlement- On the expiry day, these contracts are cash-settled at the exchange's due date rate.
2. Physical Delivery Settlement- The seller of the contract gives the buyer (long position) delivery of the commodity equal to the lot size from the exchange-defined delivery warehouse. There are two types of physical delivery settlements:
Staggered- During the delivery intention period, the exchange can mark any of the open contracts as delivery. The delivery obligation will persist even if the contract is closed after it has been designated as delivered.

Compulsory-If the contract is open on the expiry day, all contracts are required to be physically settled by the exchange.
Options
On the day the option contract expires, all CTM (close to the money) commodity options contracts are devolved into the corresponding futures contract. If you have a CTM contract that is about to expire, you must keep a margin equivalent to the futures contract on the expiration date in order for it to degenerate into a future contract the next trading day.

What impact will the change in settlement type have on March/April aluminum and zinc contracts?
According to SEBI norms, aluminum contracts will be physically settled beginning in March 2019 while zinc contracts will begin in April 2019.