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welcome to Goodwill commodities in this educational video tutorial we are going to see what is settlement price and the importance of marking to market which is shortly called M T M what we know while trading in your particular day we know that the market opens at a particular point and it will docHub a high and then it will generate a low also then finally it closes at a particular price called the closing price or the settlement price we are going to discuss about the importance of the settlement price in this video tutorial in futures market settlement is a process at the end of every trading day all the profit and loss are settled between your long position and the short position so whatever position you may have all your profit and loss or settled for a particular day this is popularly called as marking to market in short as M T M now you should know that daily settlement is a process where the closing market price which is called the closing price is determined at the end of each