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Can the Settlement Price Differ from the Last Traded Price Even on Non-Expiration Days?

Yes, the daily settlement price often differs from the last traded price. The daily settlement price is typically calculated using a time-weighted average or a specific algorithm over a defined window to prevent manipulation, whereas the last traded price is a single point in time.

This averaging makes the settlement price a more stable and representative value for margin calculations.

Does the Final Settlement Price Occur at the Exact Moment of Expiration?
Why Is the Mark Price Often Different from the Last Traded Price?
What Is the Advantage of Using a Median Price over an Average Price in Data Aggregation?
What Is a Time-Weighted Average Price (TWAP) Oracle?