Settlement Price Definition

Below please find a definition of “Settlement Price”

Financial Analysis Training & Glossary TermsSettlement Price: 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 MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on http://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

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?

About Richard Wilson