How is the Settlement Price calculated?
The Settlement Price is the price at which a Futures contract is settled. CoinDCX uses the last price* (the most recent price at which the crypto order was placed) to calculate the settlement price for the contract.
Last Price: It is the price at which the last trade has occurred right before the time of contract expiration. Last Price Marking ensures that the contract is settled closest to the spot market price. It minimizes the price discrepancy and ensures a fairer trading environment.
On CoinDCX’s platform, the liquidation of the contract is executed based on the last price. This choice brings more flexibility and power in the hands of the traders to adapt based on their risk tolerance and market conditions.
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