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Settlement Month

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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.
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.


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