Settlement price is the price used for delivery in the futures market, which is related to and different from the closing price. The settlement price involves the interests of both parties to the contract, so it is very important to determine the way. At present, there are two main types in China: American and European.

What's the difference between settlement price and closing price?

The settlement price of 1 is the weighted average price of the transaction volume of a contract within a period of time on the settlement date, which has a great relationship with the transaction volume; The closing price refers to the closing price of the last transaction on the day of a contract, which has nothing to do with the volume.

The settlement price is the basis for the exchange to calculate the profit and loss of each account and transfer funds; The closing price is not the basis for calculating profit and loss, but it is still of great significance for evaluating the market environment of the day and participating in technical analysis.

The futures market adopts settlement price mainly to control risks, so the futures market is different from the stock market and has higher leverage ratio. If the futures market adopts the closing price settlement mechanism, a variety will run stably all day, and suddenly there will be a peak in the last few seconds before the closing price, which will instantly pull or touch the daily limit. Many of Man Cang's rivals will be directly pulled out to liquidate their positions, leaving no principal and owing money to the futures company.