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."

BREAKING DOWN '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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