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In this educational video tutorial from Goodwill Commodities, we learn about settlement price and the importance of marking to market (MTM) in trading. Each trading day, the market opens at a specific point, reaches a high, a low, and then closes at the settlement price. Settlement in the futures market is the process where profit and loss are settled between long and short positions at the end of the day, known as MTM. Daily settlement determines the closing market price.
