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Webster's New World Finance and Investment Dictionary » settlement price
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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