Making-up Price

Making-up price refers to the settlement price of a futures contract, determined at the end of the trading day. It is used to calculate the gains or losses of traders who hold futures contracts. The making-up price is crucial for daily marking-to-market, which adjusts the value of the futures positions based on the settlement price. This process ensures that traders' margin accounts are updated daily according to the market movements.

Example

At the close of a trading day, the exchange determines the making-up price of a crude oil futures contract, adjusting the traders' margin accounts based on this price.