What is Settlement Price?
The settlement price refers to the average opening price when a position is opened, the price calculated after adding to the position, and the mark price corresponding to 0:00, 8:00, and 16:00 (UTC) at the time of settlement each day.
The settlement price is the price at which both unrealized PNL and realized PNL are calculated. In situations such as position opening, adding, and settlement, the settlement price will be adjusted accordingly.
Please note:
1. When the Auto-Settlement function is disabled, Settlement Price = Avg. Opening Price.
2. With Auto-Settlement enabled, the settlement price automatically updates at settlement time and when you add new positions.
3. After opening a position, if the Auto-Settlement function is on and off again, the settlement mechanism will still apply during the enabled period.
After disabling the Auto-Settlement function, the settlement price will be equal to the last settlement price until the next settlement time, after which it will be calculated as no settlement.
Example
Assuming that your linear contract position is initially 0, and you are buying long in the ETHUSDT contract with an opening amount of 1 ETH and opening price of 300 USDT. At this time, the settlement price is 300 USDT.
If your position is added by 1 ETH using 100 USDT within 1 settlement period, your average opening price will be updated to 200 USDT, and your settlement price will also be updated to 200 USDT.
By the settlement time at 8:00, the settlement price will be the current mark price, which is 250 USDT.
|
Name |
Opening |
Add Position |
Settlement |
|
Avg. Opening Price |
300 |
200 |
200 |
|
Settlement Price |
300 |
200 |
250 |
Note: Changes in settlement prices are determined by the status of Auto-Settlement switch, and will be reflected in the [unrealized PNL] and [realized PNL]. For details, please refer to What's Futures Pyramiding Auto-Settlement.