Futures Open Price vs. Previous Settlement Explained
Learn why a futures session can open above or below the previous settlement, what each reference price means, and how to measure the gap without confusing it with position P&L.
Direct answer
A futures open price is the first traded price for the defined session, while the previous settlement is the exchange's official benchmark from the prior trade date. They can differ without either price being wrong.
Open and previous settlement answer different questions
The open asks: where did the first trade of this defined session occur?
The previous settlement asks: what official benchmark did the exchange establish for the prior trade date?
Those are different timestamps and different market events. A new session can begin above, below, or exactly at the prior settlement.
CME Group's settlement reports distinguish fields such as Open and Settle. The exchange also publishes product-specific trading schedules, so the session boundary must be identified before comparing prices.
Settlement price versus last trade explains why settlement is not simply another name for the latest transaction.
A gap does not require a long market closure
Many futures markets trade for long daily sessions with scheduled breaks rather than one short cash-market session.
News, orders, related markets, financing conditions, or inventory information can change while a contract is paused or between one trade date and the next.
The next first trade can therefore reprice immediately. The difference from the previous settlement is a benchmark gap, not proof that the market was inactive for hours.
Trade date versus calendar date explains why a futures session can belong to a different trade date than the local clock suggests.
Previous settlement is not necessarily the previous last price
An exchange can calculate settlement from a stated window, VWAP, bid-ask inputs, related contracts, or another published procedure.
That means a contract may continue trading at prices different from its official settlement before the session ends.
So "open minus previous settlement" and "open minus previous last trade" can be two different numbers.
Always compare like with like: exact contract month, exchange trade date, settlement source, and session definition.
Worked example: measure the gap separately from position P&L
Assume the previous settlement is 5,000.00 and the next defined session opens with a first trade at 5,018.00.
The settlement-to-open gap is 18.00 points.
With a $20 point value, 18.00 × $20 = $360 per contract. For two contracts, the benchmark difference is $720.
Now assume a trader actually entered long at 4,992.00. Entry-to-open movement is 26.00 points, so unrealized P&L at 5,018.00 is 26.00 × $20 = $520 per contract.
For two contracts, that position P&L is $1,040, not $720.
Daily change versus position P&L shows why a market benchmark change should not be substituted for a trader's own cost basis.
Chart labels can use different session definitions
A chart's "open" may refer to the exchange trade date, a regular-hours subset, a custom session, or a data vendor's bar boundary.
Two platforms can therefore show different open prices without contradicting the underlying trades.
Check the instrument, contract month, timezone, session template, and whether the chart is an exact contract or a continuous series.
Also verify whether "previous close" on a platform actually means last trade, settlement, or a vendor-defined close field.
Use a consistent open-versus-settlement checklist
- Select the exact futures contract month - Record the exchange trade date and timezone - Identify what the data source calls the session open - Record the official previous settlement from the exchange - Keep previous last trade separate from previous settlement - Convert point differences with the correct tick value or multiplier - Use the position's actual entry price for P&L - Recheck session templates when comparing two chart providers [!TRYMARK] Session-gap checkpoint At the September 18 decision time, record the exact contract, prior settlement, defined session open, trade date, timezone, multiplier, and data source before interpreting the gap.
An open-to-settlement gap can describe repricing, but it is not by itself a trading signal.
Common questions
Is the futures open price always the first trade after the previous settlement?
Not necessarily. Settlement can be calculated before all trading for that trade date has ended. Define the session and use the exchange's trading schedule.
Why did my futures chart open far from the previous settlement?
Orders and information can change between the settlement benchmark and the next defined open. The settlement may also differ from the prior session's final transaction.
Is previous settlement the same as previous close?
Do not assume so. A platform may use "close" for a last trade, a bar close, settlement, or another vendor-defined field. Check the data definition.
Should I calculate my profit from the previous settlement?
Use your actual position basis for position P&L. Previous settlement is useful for daily market changes and clearing references, but it may not equal your entry price.