settlement month

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Settlement Month

The month during which the underlying asset of a futures contract or forward contract is delivered to the contract holder. A contract holder may offset the contract by taking an opposite position before it matures, but any investor holding such a contract on the expiration date must take delivery during the settlement month. See also: Delivery date, Notice day.

settlement month

The month in which delivery is to take place in a futures contract. Most futures positions are reversed (that is, long positions are sold and short positions are covered) before their respective settlement months.
References in periodicals archive ?
Rounds initially filed for sole custody of their child, but the estranged couple finally reached settlement months later.
Hedging strategies also combine financial and statistical models that optimize the placement of hedge coverage between optional and mandatory delivery systems, forward programs and settlement months.
Few, if any, secondary marketing departments have the combined statistical and financial algorithms needed to optimize the placement of hedge coverage between forward programs, between optional and mandatory delivery positions and between settlement months.
The secondary marketing department should determine for each forward type, settlement month and coupon, what the mortgage banker's net long or short position is, based on a loan-by-loan analysis of likely settlement month and market value sensitivity analysis.