The calculation of the Exchange Delivery Settlement Price (EDSP) is influenced by several key factors, reflecting market conditions and trading activity. Primarily, the EDSP is derived from the closing prices of the underlying asset, often averaged over a specified period or calculated based on a weighted average of trades during the final settlement period.

Market liquidity is crucial; higher trading volume and liquidity typically lead to a more accurate and stable EDSP. Conversely, low liquidity can result in significant price fluctuations and a less reliable EDSP. The method of calculating the EDSP also varies by exchange and contract type, incorporating different averaging techniques or specific rules for inclusion and exclusion of trades.

External factors such as market news, economic reports, and geopolitical events can impact the underlying asset's price, thus affecting the EDSP. Additionally, the volatility of the underlying asset plays a role; higher volatility can lead to more significant price swings around the EDSP calculation time. Finally, the integrity and accuracy of the price feeds and trading systems used by the exchange are essential to ensure that the EDSP reflects true market conditions.

These factors collectively determine how representative the EDSP is of the underlying market, impacting traders' positions and settlements.