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Folks:
I've read several opinions on the terms 'last price, closing price and
settlement price.' I'm not certain I have read the definitive description, so I
paged through several of my data provider's manuals. Here's what CSI says on the
subject when you first set up a database in their product:
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"Data presentation refers to the handling of settlement prices that occur
outside
the day's trading range. Many traders make the mistake of assuming that the
settlement price quoted by the exchanges is the same as the last or closing
price. This is not necessarily so. Many contracts, particularly at the
mercantile exchanges are "settled" by a committee of exchange officials after
the close of the markets.
It is a common practice to use the settlement price as proxy for the closing
price in simple bar-chart analysis. It is also a common practice (although not
recommended) to adjust the high or low price to match the settlement when
markets are settled outside the trading range."
Taken from the CSI Unfair Advantage Manual, version 1.7150
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I'll bet there is a better definition if we dig further. I think there is indeed
some differences between these three phrases.
Best,
Tim Morge
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