rephrasing in trading section #8
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some rephrasing to be closer to ISDA-style vocabulary.
we can still have "physically settled" contracts for tokenized commodities without a truck full of carbon arriving at anyone's office.
physical settlement for derivatives means exchanging the underlying for trade price. cash settlement is paying only the net (final_price - trade_price) in money and not exchanging the underlying.
think of a cash equity forward trade as "physically settled" without any messengers delivering paper.