What is the difference between physical and cash settled?

A physical settlement means there is a physical delivery of the underlying commodity or instrument of a particular futures contract. Cash settlement means the commodity isn't physically delivered, only the difference in price is being paid out and there will be a debit or credit to your account. Physical delivery is not permitted at Webull, and policies are in place to ensure there will not be physical delivery. Cash settlement is not supported either and positions held close to expiry will be forced liquidated. For more details on "Forced Liquidation", kindly click here.