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What Is Daily Settlement?



Daily Settlement in futures trading is the process of settling the profit or loss made by a futures position at the end of each trading day, hence the term "Daily".

Futures contracts realise their gains and losses at the end of each trading day. This means that any profits made during the day will be deposited into your margin account while any losses would be deducted from it. There is no accrual of profit or loss in futures trading.

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