A figure determined by the
closing range which is used to calculate gains and losses in
futures market accounts. Settlement prices are used to determine gains, losses,
margin calls, and invoice prices for deliveries. Related:
closing range.
Established by the clearinghouse from the closing range of prices (the last 30 seconds of the day). The settlement price is used to determine the next day's allowable trading range, and to settle all accounts between clearing members for each contract month. Margin calls and invoice prices for deliveries are determined from the settlement prices. In addition to this, settlement prices are used to determine account values and determine margins for open positions.
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