Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

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Settlement Price

The settlement price is the “average” price based on the last couple of minutes of a “pit” session. Electronic markets do not have a settlement price per se. The settlement price of an electronic market is based on the “pit” close. For example: EMINI SP closes at 4:00 pm Chicago time. The Pit session concludes at 3:15 pm Chicago time. The exchange will calculate the closing price based on the last couple of minutes of trading before the pit close. The customer’s margin responsibility and cash value in the account will be based on that 3:15 settlement not the last price traded electronically at 4:00 pm. The open of the next session will start with the settlement price.