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Settlement Price

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Dictionary Says

Definition of 'Settlement Price'

The average price at which a contract trades, calculated at both the open and close of each trading day.
Investopedia Says

Investopedia explains 'Settlement Price'

Settlement prices are necessary for determining whether gains or losses were made on a contract held during a certain time period. Settlement prices are also required to determine if an investor's margin account requires a margin call for any day a particular security is held.

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