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 settlement price is determined at the end of the regular trading hours. It is used to calculate gains and losses in futures market accounts, performance bond calls and invoice prices for deliveries. Settlement involves the official daily closing prices of a [[futures]] [[contract]].
  
 
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Revision as of 18:06, 1 March 2008

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Settlement takes place when a transaction is finalized between a buyer and a seller. The settlement price is determined at the end of the regular trading hours. It is used to calculate gains and losses in futures market accounts, performance bond calls and invoice prices for deliveries. Settlement involves the official daily closing prices of a futures contract.


References