Settlement Price
The average price at which a contract trades, calculated at both the open and close of each trading day.
Investopedia Commentary
Settlement prices are necessary for determining whether gains or losses were made on a contract held during a certain time period. Settlement prices are also required to determine if an investor's margin account requires a margin call for any day a particular security is held.
Related Links
Margin Trading Tutorial
Futures Fundamentals
See also: Contract for Differences, Futures Contract, Margin, Margin Call, Settlement Date
settlement price