The closing price and settlement price are two distinct terms used in financial markets, particularly in the context of trading and investment. While they are related to the pricing of assets, they serve different purposes and have specific meanings.

1. Closing Price:
The closing price refers to the last traded price of a financial asset, such as a stock, bond, or commodity, at the end of a regular trading session on a given day. It is the price at which the final trade occurred before the market or exchange closed for the day. The closing price is widely used by traders and investors to assess the market's sentiment and to calculate various technical indicators, such as moving averages and support/resistance levels. It is considered a key reference point for daily price analysis.

2. Settlement Price:
The settlement price, on the other hand, is a specific price determined by the exchange or clearinghouse at the end of the trading day. It is used primarily in futures and options markets. The settlement price serves as the reference point for calculating gains and losses for traders holding futures or options contracts. It is often based on a weighted average of trading activity during a designated settlement period, which may occur after the regular trading session has ended. Settlement prices are crucial for determining the financial obligations of traders and ensuring the integrity of the futures and options markets.

In summary, while the closing price represents the last price at which an asset traded during a regular trading session, the settlement price is a reference price used in futures and options markets for contract settlement purposes. Both prices have their significance in different contexts within the financial industry, aiding traders and investors in making informed decisions and managing risk.