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I've been learning about Futures Contracts on Khan Academy (The finance related forum on there is quite old and no one has replied to my questions in the past) and the instructor has used the term "market delivery price" in the first few videos and "settlement price" later on.

I assume they are the same thing, right? From my understanding, both terms mean "both the buyer and seller are agreeing on a price on a future date for the commodity".

If this is the wrong place to post this, please let me know and direct me to where it should be posted. Thank you so much for your time, everyone!

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  • $\begingroup$ "Settlement price" seems to be the more commonly used term in reference to oil futures. "Market delivery price" might imply something about inclusion of delivery costs which may be implicit in the terms of the contract, but I'm really not sure about this. I suspect they are effectively synonymous in the context you describe. $\endgroup$ – Brian Z May 6 '20 at 14:26
  • $\begingroup$ I think the instructor was being too loose. There is a final “settlement price” in futures markets at the end of the trading session. “Delivery” is the way in which a contract is closed out - either via a “physical delivery” or via cash settlement. $\endgroup$ – Brian Romanchuk May 6 '20 at 15:49

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