Settlement Price

Settlement Price Glossary Definition

A price, based upon that day's closing price or range of closing prices, used in determining the next day's price limits, and in invoicing of deliveries to be made due to filing of notice of intention to deliver on that day.

Because there is often a range of closing prices in commodity trading, rather than a single closing price, and because the settlement price is based upon the closing range, it is also frequently used by the industry for a variety of other purposes, including:

(a) Analysis of closing market conditions

(b) Determining gains, losses, margin calls, and invoice prices for deliveries

(c) Calculating gains and losses in futures market accounts

Free Daily Hedge Fund Newsletter

Related to Settlement Price:

• Geographical Hedge Fund Guides
• Hedge Fund Database
• Hedge Fund Administrator
• Hedge Fund Attorneys andLawyers
• Investment Book
• Hedge Fund Terms and Definitions
• Hedge Fund Tracker Tool
• Financial Certification
• Hedge Fund Forum

Permanent Link: Settlement Price

Tags: Settlement Price, Settlement Prices, Definition of Settlement Price, what is a Settlement Price, define what Settlement Prices are, how to calculate a Settlement Price