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.
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.