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What is the difference between Closing price, Last traded price and settlement price ?

I got the difference between Closing Price and Settlement price from previous post : The difference between Close price and Settelment Price for future contracts

but still confused how closing price is different from Last traded price ?

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To answer your question consider the following example using actual prices for SPY ETF on 7/31/15:

Last 19 Trades on AMEX

"hopey.netfonds.no"

By looking at the last 19 trades that occurred at the very last second, you will see a notable price movement on prices. If you go to Google/Yahoo Finance the Closing Price for the ETF is 210.50 (largest trade at the close?) but the very Last trade according to the AMEX exchange was 500 shares at 210.47. The settlement price is the average price (say on the last 15 minutes ) to avoid manipulation since an option would be considered to be ITM by 0.01 above the strike price for a call.

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The easiest way to think of this is as follows:

  1. Settlement Price - Price at which the exchange margins all accounts for those options.

  2. Closing Price - Mid/Bid/Ask of Active Market at the exchanges last trade time. E.g. for TY Contracts this is at 5pm EST vs. a Settle Time of 3pm EST.

  3. Last Trade Price - Not all options trade every day. This is the price the last actual execution was at. E.g. SPY 250 Mar 18 2016 Calls Traded at 0.3 on 1/27/16, it is now 2/2/16 there has been no trades since 1/27 thus 0.3 will remain the last traded price, even if the market is 0.1/0.2

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