Settlement Price

What is Settlement Price?

Settlement Price meaning The daily price at which the clearing organization clears all trades and settles all accounts between clearing members of each contract month. Settlement prices are used to determine both margin calls and invoice prices for deliveries. The term also refers to a price established by the exchange to even up positions which may not be able to be liquidated in regular trading.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary