Definition
When the game ends and the market pays out: contracts on the winning side are worth $1 and the others $0. Settlement is final. It is when the Autotrader's profit or loss on a position becomes part of its record, unless it sold earlier through a take-profit, a stop-loss or a pre-game exit.
Related terms
- P&L (profit and loss) — Net money made or lost after fees. Only closed positions count — an open one has no P&L yet.
- Take-profit — Sell early once the price has risen enough, locking in part of the gain before settlement.
- Stop-loss — Sell early once the price has fallen enough, capping the loss before settlement.