settlement price

settlement price definition - finance
The price established by the futures exchangeÂ’s settlement committee at the close of each trading session. The settlement price is determined by calculating the weighted average of prices during the closing period, which typically ranges from five to ten minutes. This is the official price used to determine margin requirements and price limits for the next day. It is also used by trading companies to determine net gains or losses. Also called closing price.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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