A derivatives screen may quote a Bitcoin price in dollars, accept collateral in bitcoin, and settle gains in bitcoin. Another contract may quote the same market in dollars but settle in USDC. Quote currency is the measuring unit, collateral is the asset supporting the position, and settlement currency is what discharges the obligation. Some venues combine these roles while others separate them, particularly in accounts accepting several collateral assets.

Suppose two strategies each report a 100-dollar gain. One credits a dollar-linked token; the other credits bitcoin worth 100 dollars at settlement. If bitcoin subsequently falls before the user converts it, the realized coin proceeds have a different dollar value. Conversely, converting a stablecoin settlement into bitcoin creates a new trade. A portfolio record should preserve both the quantity of the settlement asset and the exchange rate used for any reporting currency.

Identify settlement asset, delivery or expiry process, calculation price, settlement time, and treatment of fees. Cash settlement means paying a calculated amount rather than delivering the underlying position, but cash can mean a cryptocurrency in the venue's terminology. Margin rules add a separate layer: unrealized gains may or may not be available for other positions. Never infer redemption rights, banking protection, or convertibility merely from a contract using a familiar currency symbol.