Definition
The official price an exchange sets for a futures contract at the end of each trading day.
The story
It isn't simply the last trade. For ES (E-mini S&P 500 futures) and NQ (E-mini Nasdaq-100 futures), CME (Chicago Mercantile Exchange) Group bases the daily settlement on trading in the final 30 seconds before 3:00 PM CT (Central Time). It's used to mark every open position to market: gains are added and losses taken from accounts each day.
Why markets watch it
It's the futures price you'll see quoted as the day's official close.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms