Difference between revisions of "Settlement"

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Settlement takes place when a transaction is finalized between a [[buyer]] and a [[seller]]. The price of an underlying asset on the [[delivery]] date is called the settlement price. A [[futures]] contract price tends to converge towards the settlement price on the delivery date.
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Settlement takes place when a transaction is finalized between a buyer and a seller. The price of an underlying asset on the [[delivery]] date is called the settlement price. A [[futures]] contract price tends to converge towards the settlement price on the delivery date.
  
  

Revision as of 06:33, 16 February 2008


Settlement takes place when a transaction is finalized between a buyer and a seller. The price of an underlying asset on the delivery date is called the settlement price. A futures contract price tends to converge towards the settlement price on the delivery date.



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