Does the Final Settlement Price Occur at the Exact Moment of Expiration?
Not necessarily at an exact moment. For many cash-settled futures, the final settlement price is determined by calculating an average price over a specified time window leading up to or around the expiration time.
This process, often using a VWAP or similar methodology, is designed to prevent price spiking or manipulation that could occur at a single, precise moment.
Glossar
Final Settlement
Resolution ⎊ Final Settlement, within cryptocurrency derivatives and financial markets, signifies the conclusive determination of obligations arising from a contract, typically involving a cash or asset transfer to extinguish all outstanding commitments.
Settlement Price
Price ⎊ The settlement price, within cryptocurrency derivatives, options trading, and broader financial derivatives contexts, represents the final agreed-upon value at which a contract expires or is otherwise terminated.
Final Settlement Price
Valuation ⎊ The Final Settlement Price in cryptocurrency derivatives represents the agreed-upon value of the underlying asset at contract expiration, crucial for determining payouts in options and futures.