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The Traders Spread

Settlement Price

The last price paid or the closing price for a commodity on any trading day. The clearing house determines a firm's net gains or losses, the margin requirements, and the next day's price limits, based on the options and futures contract settlement price. Also referred to as Closing Price. Thin liquidity traded options contracts may be exchanged at the theoretical value.

More terms under S

Part of the Trading glossary. Definitions are general explanations, not investment advice.