How Does a Reference Rate Differ from the Last Trade Price on a Futures Exchange?
The reference rate is an independently calculated price (often an average over time and across exchanges) used for final settlement at expiration. The last trade price on the futures exchange is the price of the most recent transaction on that specific exchange, used for daily mark-to-market and trading decisions.
The reference rate is designed to be a final, unmanipulable benchmark, whereas the last trade price is a dynamic, real-time value.
Glossar
Last Trade Price
Price ⎊ In cryptocurrency and derivatives markets, the Last Trade Price (LTP) represents the most recent price at which an asset or contract changed hands.
Trade Price
Price ⎊ The trade price is the definitive, final valuation at which a financial transaction, whether for a spot asset or a derivative contract, is formally executed and settled between counterparties.
Last Trade
Execution ⎊ Last Trade signifies the most recent completed transaction for a given asset, representing a pivotal data point in market microstructure analysis.
Reference Rate
Benchmark ⎊ Reference Rate is the established, observable interest rate or index used as the basis for calculating floating payments, margin requirements, or funding costs within a financial contract, particularly for derivatives referencing time value.