settlement price

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Settlement price

A figure determined by the closing range that is used to calculate gains and losses in futures market accounts. Settlement prices are used to determine gains, losses, margin calls, and invoice prices for deliveries. Related: Closing range.

Settlement Price

In futures, the average price at which a futures contract trades on a given day. It is calculated by taking the average of the opening price and the closing price on that day. The settlement price helps a broker determine whether a client's margin account needs to be called, if the price changes too much, and the client holds the contract in question.

settlement price

In futures trading, an official price established at the end of each trading day by using the range of closing prices for a particular contract. This price, similar to the closing price for stock, is used to determine margin requirements and the following day's price limits.
References in periodicals archive ?
Stability returned to the Trucking Freight Futures markets with very little movement in settlement prices across all 11 contract markets through the rest of 2019.
As settlement prices in the Wholesale Electricity Spot Market (WESM) cognitively breached the secondary price cap on Friday's rotating blackouts, the next 'painful blow' on consumers will be high electricity bills.
in order to avoid price risk premiums as a result of too long periods of validity, a new calculation based on the settlement prices will be made for the working prices after the award of the contract the pegas gaspool-natural-gas-year-futures on the futures market of the energy exchange powernext.
The positive tendency in oil prices since the beginning of 2018 was reflected in the May trading session by a significant increase in month-on-month settlement prices for the major crude oil benchmarks around the world for July 2018 delivery.
The positive tendency in oil prices since the beginning of 2018 was reflected in the April trading session by a significant increase m-o-m in the settlement prices for the major crude oil benchmarks around the world for June 2018 delivery.
NYMEX natural gas closed at $2.14/m BTUs, with settlement prices for NYMEX RBOB gasoline at $1.53/gallon at heating oil at $1.30.g.
Total Gas & Power North America and Therese Tran, a gas trader for Total in Houston formerly known as Therese Nguyen, settled charges of attempted manipulation of monthly index settlement prices at four major trading hubs in Texas and elsewhere in the Southwest during monthly settlement periods, the CFTC said.
c) Changes related to the determination of daily settlement prices (section 4.12.1);
The ministry hopes to use the data as settlement prices on the world's first LNG futures market, which is set to open on the Tokyo Commodity Exchange.
China and Iran agreed in June to use NITC vessels to supply oil on a delivered ex-ship basis (DES), which sets settlement prices at the point when the oil leaves the tanker in the Chinese port and requests the seller to provide third-party insurance to cover indemnities for oil leaks and personal injuries.
According to the company, the previous contract oil price was based on the NYMEX Settlement prices for West Texas Intermediate (WTI), less certain transportation, quality and other deductions.
In their experimental approach, Wilken, Cornelissen, Backhaus and Schmitz (2010) include 119 student dyads and 41 key account manager dyads to explore the influence of cost information on sales managers' negotiation behavior and negotiation outcomes: Full cost, rather than direct cost information increases sellers' reference prices and leads to increased settlement prices.