Settlement Price
The average price at which a contract trades, calculated at both the open and close of each trading day. Investopedia Says:
Settlement prices are necessary for determining whether gains or losses were made on a contract held during a certain time period. Settlement prices are also required to determine if an investor's margin account requires a margin call for any day a particular security is held. Related Terms:
Contract for Differences
Futures Contract
Margin
Margin Call
Rolling Settlement
Settlement Date |