Updated on March 18, 2023
In technical analysis, “Settle” typically refers to the final price at which a futures contract is traded and the obligations of the buyer and seller are settled for the day. The settle price is used as a benchmark for determining gains or losses on the futures contract, and is used by traders to establish or exit positions in the market. The settle price is often used in conjunction with other technical analysis indicators, such as moving averages, to make trading decisions.
Meaning of Settlement Period
The settlement period refers to the period of time between the end of trading and the final resolution of a trade. It is the time when the final price of a financial instrument is determined and the obligations of the buyer and seller are fulfilled. During the settlement period, the details of the trade are processed, including the calculation of any gains or losses, the transfer of funds, and the delivery of the underlying assets if applicable. As per the latest amendment by SEBI, Indian stock markets will have a settlement period of T+1 days from the initial period of T+2 days.