As I know weighted average price of the last 30 min of the underlying will be the settlement price of the Stock future.
but underlying Index is actually not tradable. then how settlement price is being calculated.?
For index we arrive at closing price and not settlement price.The closing price of Index is calculated based on weighted average closing price of the constituent stocks of index during last half an hour of trading. In case of Nifty it is calculated based on weighted average closing price of 50 stocks during last 30 mins of trading which forms the index.
1 Like