How Does the Concept of “Last Trading Day” Differ from the “Final Settlement Day”?

The last trading day is the final day on which a futures contract can be bought or sold on the exchange. After this day, the contract ceases to trade.

The final settlement day is the day, often the day after the last trading day, when the contract's obligations are fulfilled, either through physical delivery or a final cash transfer. The final settlement price is typically determined based on prices observed on the last trading day or the day before.