Settlement Price

This Issue in United States

Concept of Settlement Price in Futures Trading

In this context of financial law, the following is a definition of Settlement Price: 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.