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What Is the Role of an Index Price in the Settlement of a Crypto Futures Contract?

It is the weighted average spot price from multiple exchanges used as the benchmark to calculate the final cash settlement amount.
Greeks.Live22.11.25

What Is the Role of an Index Price in the Settlement of a Crypto Futures Contract?

The index price is the benchmark rate used to determine the final settlement value of a cash-settled crypto futures contract. It is typically calculated by aggregating and weighting the spot prices of the cryptocurrency from several major, reputable exchanges.

This multi-exchange approach is crucial to prevent manipulation on a single venue and to ensure the final settlement price reflects a fair, broad market value.

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