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What Is a “Settlement Window” and Why Is Its Duration Important?

The time period over which prices are averaged to calculate the FSP; a longer duration reduces the impact of flash crashes and manipulation.
Greeks.Live22.11.25

What Is a “Settlement Window” and Why Is Its Duration Important?

A settlement window is the specific period of time, typically minutes or hours, over which prices are averaged to calculate the final settlement price (FSP). Its duration is important because a longer window reduces the impact of a sudden, brief price spike or "flash crash," making the FSP more representative of the true market price and reducing the risk of manipulation.

What Regulatory Mechanisms Are in Place to Prevent or Mitigate Flash Crashes in Traditional and Crypto Markets?
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Why Is Using Multiple Exchanges for FSP Calculation Crucial for Preventing Manipulation?
How Does Theta (Time Decay) Influence the Potential for Slippage over a Longer Holding Period?

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