The liquidation price calculation varies by market and instrument, but generally involves averaging prices over a specific period of time close to closing, often using volume-weighted average price (VWAP) or other methods to ensure fair and representative value. Settlement prices are usually based on the average contract price over a specific period, calculated both at the beginning and at the close of each trading day, although not all markets use the same formula. For most stock index futures, the daily liquidation price for the first month is calculated using a volume-weighted average price (VWAP) based on the last 30 seconds of the trading day. They are used as closing prices to equalize spreads when the direct instrument has no other available price.