Understanding the concept of settlement prices is crucial in the world of finance, particularly in the futures market. These prices, determined by the closing range, serve as the basis for calculating gains and losses in futures market accounts. They also play a significant role in determining margin calls and invoice prices for deliveries. In other words, settlement prices are a key factor in determining the financial outcomes of futures transactions. As such, having a solid understanding of this term is essential for anyone involved in this complex market.
