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Definition of sales settlement

Settlement means that the exchange clearing agency or clearing company calculates the trading profits and losses of members and customers, and the calculation results are used as the basis for collecting transaction margins or additional margins. Therefore, settlement refers to the clearing of all aspects of the futures trading market. It includes not only the settlement of members by the exchange, but also the calculation of trading profits and losses by member brokerage companies for their agent clients. The calculation results will be recorded in in the client's margin account.