Settling Price

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DEFINITION of 'Settling Price'

The price used daily by clearing houses to clear all trades and settle accounts between clearing members. Also commonly referred to as "settlement price."

INVESTOPEDIA EXPLAINS 'Settling Price'

The settling price is calculated daily by the exchanges and used to identify margin deficiencies and invoice prices for deliveries.

The settling price is typically used as the closing price for futures contracts. As the closing prices of futures contracts generally fall within a range of prices, the settling price is calculated as the weighted average of transactions' prices during the closing period.

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RELATED FAQS
  1. How are commodity spot prices different than futures prices?

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  2. How do commodity spot prices indicate future price movements?

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  3. Where did market to market (MTM) accounting come from?

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  4. Why is market to market (MTM) accounting considered controversial?

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  5. What is the difference between economic value and market value?

    The difference between market value and economic value is that the former represents the minimum amount the customer is willing ... Read Full Answer >>
  6. How do I set a strike price for a future?

    Strike prices can be set for put and call options, but investors engaged in futures contracts are obligated to trade the ... Read Full Answer >>
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