Define “Final Settlement Price” in the Context of Cash-Settled Futures

The final settlement price is the price used to determine the final cash payment between the buyer and seller at the contract's expiration. It is typically calculated based on an average of the underlying asset's spot price over a specified period just before or at expiration.

This averaging is done to prevent manipulation of the price at the precise moment of settlement. For crypto, it often uses an index price from multiple exchanges.